Calculating Bonus For Contract Workers Who Get Per Day Salary? - CiteHR
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Dear Vathiraj
Once the workmen are not permitted to take any leave and if they work, then only they will be eligible to get the pay, then how you can apply the above criteria.
(a). The workmen were not laid off or no standing order is in existence for becoming absence from his duty.
(b) Once no work no pay is in existence then there is no clause of availing the leave with pay.
(c) If the worker got injured during and on the course of his employment, then only this clause is applicable otherwise without any reason if the person absented himself.
(d) If the worker is not on maternity leave
Then we need to consider section 13.
This is my opinion. Let our learned members give their expert opinion.

Hello Sir,

Thank you for making the calculation more simple.

After having a clarification by Mr. Jaspal Negi that criteria for Bonus eligibility is minimum 30 working days in a financial year and not the 240 days criteria, in further query, I would like to confirm the following:

1) For Direct employees, I would count their total working months during the financial year, consider their basic Rs.3500/-. Then would multiply it by no. of months worked and would take out 8.33% of that total amount. Thus, I will get my final payable bonus amount. Even if the basic is Rs.5500 or anything above Rs.3500, I will only consider Rs.3500. Just one doubt that what if employee has not worked for the whole month? Do we have to consider that month too?

2) For contractual workers, I would take Rs.3500 as base, divide it by no. of working days in a month (26) and then multiply it by actual days for which worker has worked. And subsequently taking out 8.33% of that amount. Is it possible to first make total of all the months and then calculate 8.33%?

Please let me know.


Dear Harsha

Whoever worked for more than 30 days in the financial year 2012-13 will be eligible to get the bonus. For permanent employees if they worked for Full April month then they will get the bonus. For First month of joining and last month of leaving the company you have to calculate the Bonus as (if the employee joins on 16 Apr 2012, then you should consider his basic as 1750 and not 3500. like that if the person resigns and last working day is 15 June 2012 then you should consider the basic salary as Rs.1750 and not 3500/-.

If the Basic is more than Rs.10000/- then the Bonus is not required to be given as per PoB Act. But they can be given Ex-gratia (Profit sharing with employees from the company).

The minimum Bonus is 8.33% (Rs.3499/-) and Maximum Bonus is 20% (Rs.8400/-)

Now I am coming to your queries.

1) For Direct employees, I would count their total working months during the financial year, consider their basic Rs.3500/-. Then would multiply it by no. of months worked and would take out 8.33% of that total amount. Thus, I will get my final payable bonus amount. Even if the basic is Rs.5500 or anything above Rs.3500, I will only consider Rs.3500. Just one doubt that what if employee has not worked for the whole month? Do we have to consider that month too?

You can consider this simple calculation as if the employee paid for the absence period then you can consider for paying the Bonus for those days.

2) For contractual workers, I would take Rs.3500 as base, divide it by no. of working days in a month (26) and then multiply it by actual days for which worker has worked. And subsequently taking out 8.33% of that amount. Is it possible to first make total of all the months and then calculate 8.33%?

No. You must prepare monthwise attendance from Apr 2012 to Mar 2013 and take the working days for every month. Then use the formula as Rs.3500/No of working days X No of days worked in the month. Then at last total the Basic salary of all the month and in next column just multiply the total basic amount with 8.33% or whatever percentage your company considers as bonus.

Hope your doubts are cleared. In case of any further doubt do not hesitate to ask.

Dear Boss,
As you have mentioned in your post that we will take 1750 to calculate bonus why not 3500 ?
One more thing ....In my organization one employee has joined on 20 august this year....is he eligible for bonus ?
If yes,how i will calculate bonus ?
pls give me some examples...
Regards,
Khushi

Dear Khushi
If any employee joins in middle of the month then the basic amount to be calculated on prorata basis and not complete eventhough he is drawing more than 3500 for the partial month.
The Bonus is paid for those worked during the period from 01 Apr 2012 to 31 Mar 2013. Hence if the employee joined in this financial year i.e., after 01 Apr 2013, will get the bonus during next financial year.

Dear Bhaskar, what if he is drawing consolidated salary of Rs. 10000? Regards, Khushi
Then also you need to consider the salary as Rs.3500/- only for calculation of Bonus. If the person served for full financial year 2012-13, then he will get minimum of Rs.3500/- (8.33%) and Maximum of Rs.8400/- (20%) as Bonus.
Dear Seniors,

From all your discussions and other Posting on BONUS Act. I would like to lay down the few points so that you all can rectify if their is any error in my Understandings.

1 ) From the Bonus Act, the eligibilty of bonus is whoever earning below salary Rs 10000/-

Here the Term "salary below Rs 10000/-" refers to an employee's monthly BASIC salary ( or incase plus Dearness Allowance wherever exist) which is similarly accounted in case of EPF. And Excluding other allowances like OT , HRA ,Travelling Concessions, Food Allowance , Washing Allowance , Conveyance Allowance , ESI & EPF contributions, retrenchment compensation, incentives, gratuity etc)

Concluding remarks = Bonus is calculated on Basic and DA. ie whomsoever getting gross salary above Rs10000/- is eligible for BONUS if there Basic Head is below Rs1000/-

2) For calcuation purpose, Rs.3500 per month maximum will be considered for the bonus calculation,if an employee BASIC +DA is below or equal to Rs 10,000/- per month and bonus has to be paid @ 8.33 % of the salary.

Concluding remarks = Rs 3500 is the Bonus AMOUNT for all Employee annually enjoying SALARY (BASIC + DA) is less than or equal to 10000/-

4) Can the practise of paying bonus on monthly basis is allowed ? , some pay minimum 8.33% of Rs 3500 i.e Rs 292/-

3) I heard Hospitals, Social welfare institutions, Chambers of the Commerce , Indian Red Cross society or other institutions of a like nature, universities and educational institutions are exempted from payment of Bonus..

As I am working in a medical setup. Are Clinics and HOSPITALS like ( Apollo, Fortis etc) and Medical Diagnostics setup like (SRL Diagnostics,Roche Diagnostics) exempted from payment of Bonus ? I like to be very specific.. If their is any NOTICE / CIRCULAR .. Please let me know.

Thanking you,

Dear all, my salary is 10080. and I getting last bonus 19394. please explain my bonus percentage and how to calculate? Thanks, K.Eswaran.

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