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Could you provide some clarity on anniversary and annual appraisal. For anniversary appraisal when is the revision applicable from?
How do you calculate bonus, what % of ctc (or is it % of basic). Is it compulsory to provide bonus for all designations?
21st May 2013 From India, Bangalore
Hi, Bonus always calculated on basic salary’s only, who’s basic is 10000 and 10000 below they are all eligible for bonus.
21st May 2013 From India, Hyderabad
Bonus is calculated on the basic wages. The % is 8.33% or generally there will be 1 month basic wages.
Bonus is paid to every one irrespective of the designation who are drawing salary on below 10000/-
Annual appraisals has many process as self appraisal, 180 degree appraisal, 360 degree appraisal etc. you should follow any one of those formats.
21st May 2013 From India, Bangalore
Hi Shany Jalal Find enclosed attachment for Performance appraisals as traditional, 180 Degree & 360 Degree.
22nd May 2013 From India, Bangalore

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File Type: doc How to Conduct 180 360 degree Appraisals.doc (60.5 KB, 547 views)

Dear Senior, My question is that please confirm me the Bonus Calculation process Total Basic of 12 months(Financial year) * 8.33% * 12 Please let me know if I am not correct, Regards DS
23rd May 2013 From India, Calcutta
Dear DS,
This is not the correct way to calculate the bonus.Bonus calculation is generally based on available surplus,allocable surplus,gross profit and set on and set off.First read Bonus Act ,you will get an clear idea about these terminologies and bonus calculation process.
If you are not able to understand it,write me I will give you the detailed sheet.
23rd May 2013 From India, Pune
Dear Meenakshi Ji,
Bonus depends on surplus or gross profit for just starting five years. At the beginning stage of a company it is considerable. If company earns profit, they will pay bonus to their employees for first five years only. From the 6th year, it becomes liability. Company has to pay bonus.
Factors to be judged for Bonus:
Basic up to Rs.10,000/-
Minimum working period : 30 days for last financial year
Percentage: 8.33% to 20% on Basic.
Earned basic x percentage = Bonus
Am I correct ?
Please give your advice also.
Manas Roy Chowdhury
23rd May 2013 From India, Visakhapatnam
Dear Ms.Meenakshi, I do agree with Manas Roy Chowdhury..please advise the same DS
23rd May 2013 From India, Calcutta
Bonus range min. 8.33% to max. 20% Calculation 3500 Monthly bonus 3500x8.33%=292 min. 3500x20%=700 Max ABOVE CAL. ARE AS PER RULE. otherwise most of compay pay 1 month basic salary paid
23rd May 2013 From India, Chennai
Hi Manas Ji,
According to sec 16(1-A) for 1st five years bonus shall be payable only in respect of the accounting year in which employer derives profit without applying the provisions of set on and set off.For the 6th and 7th accounting years provisions of set on and set off apply subject to the conditions as mentioned in 16(1 B-I).
I was doing my bonus calculation based on these provisions which was also certified from CA.
Obviously other conditions like eligibility ,wages ,minimum and maximum bonus,computation of number of working days shall be kept in mind according to the bonus act.
Please correct If I am wrong?
23rd May 2013 From India, Pune
Dear DS, It is not basic. I wrongly mentioned "Basic up to Rs.10,000/-" It is gross not basic. Regards, Manas.
23rd May 2013 From India, Visakhapatnam
Dear Meenakshi Ji,
You are 100% correct. From 6th & 7th year set on and set off is applicable. I wanted to say that bonus is a liability. If company is unable to generate profit although it has to pay.
According to 16 (1 B I) "for the sixth accounting year-- set on or set off, as the case may be, shall be made in the manner illustrated in the 2[ Fourth Schedule] taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in res- pect of the fifth and sixth accounting years" -- means whatever excess or deficiency...we have to pay minimum bonus.
Am I correct ? Please advice.
23rd May 2013 From India, Visakhapatnam
Bonus comes under the statutory compliance and no relation with performance appraisal results, you have to pay bonus before expiring the 6 months of next financial year those are getting Rs.10K or <than 10K but on up to Rs.3500 (Earned basic x percentage = Bonus) (Rs.292 to Rs.700) @ rate of Minimum 8.33% and maximum up to 20% subject to Profit and Loss arise in your 6th Balance Sheet as exemption is only for 5 years and employee must have worked for minimum 30 days or > Rs.100 due to him during the financial year. If it is any type of Incentive paid by your company other than the statutory amount, may be linked to your performance appraisal systems/results.
Jagdish Yadav
Mussoorie Dehradun
24th May 2013 From India, Delhi
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