Thread Started by #s_pal

Dear all, I have a query regarding Bonus Act. I want to know that basic salary upto what limit is eligible for bonus benefit. and for basic salary above 10,000 how is bonus calculated. also, what is the maximum limit of bonus?
thank you
9th December 2011 From India, Gandhinagar
Employees who basic is Rs.10000/- and below are eligible for statutory bonus and for calculation of bonus Rs.3500/- will be considered as basic.
The employees who are drawing above Rs.10000/- are not eligible for statutory bonus and if the management is interested to pay they can pay as exgratia.
As per the statute the maximum bonus limit is 20%.
Regards - kamesh
9th December 2011 From India, Hyderabad
thank you Mr. Kamlesh. Also, I wanted to know that if the company hasnt completed 5yrs, is bonus act applicable? and how is allocable surplus calculated?
10th December 2011 From India, Gandhinagar
Dear Mr.Pal
Refer to your query on Bonus, Allocable surplus calculated on the basis of Gross profit arrived after completion of Financial Year which ends on March 31st of every year declared by the company after completion of Books of Accounts closed and also P&L, Balance sheet derived the profit. Refer to Schedule 1 and 4 of the act, 67 % of gross profit as calculated for non banking companies after deducting Depreciation, Direct Taxes and Development Rebate from Gross Profit.The surplus which is available after deducting the sums from the above is called is Allocable surplus.
Regards
V R RAO PULIPAKA
10th December 2011 From India, Bangalore
Hi
The bonus formula is Monthly Basic+DA*percentage offered by the company(It ranges from minimum 8.33% to maximum 20%, if company wants to give beyond 20% they can)*12.
For e.g. if basic+Da is 5000 and company wants to give minimum 8.33%
5000*8.33%*12= 4998.
Company should pay the bonus to their employees within the 8 months of the closing of prevoius fiscal year.
Thanks
Venkat.
12th December 2011 From India, Pune
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