2. Bonus is calculated for 30/31 days.
3. Whatever may be the gross salary, if anyone’s basic+da is below rs.10000/-, he is eligible for bonus. Also if anyone’s basic+da is more than rs.3500/-, say 6000/-, company has to make calculations, considering minimum rs.3500/-. If basic+da is less than 3500, say 3000, then calculation will be on rs.3000/-.
4. Minimum bonus payable is 8.33% of monthly basic+da, multiplied by number of months. i.e. if basic+da is 6000, and the person has worked for 12 months, in the previous accounting year, then minimum bonus will be 8.33% of 3500 X 12 = rs.3500/-. In short, One Basic+Day is a minimum bonus.
5. It is Management’s decision, to announce more bonus, either by increasing percentage, say 12 percent, or increase limit of basic+day. E.g. 8.33% on rs.5000 x 12…etc.
6. Employee joined in May 2013 is not eligible for bonus, since bonus is related to previous year’s profitability, and previous year’s basic+da. Looking at festive mood of employees, Management gives some payments to new joinees also, but it is called ex-gratia, and not bonus. Even if any employee joines on 1st March 2013, he should be paid bonus for one month.
Hope, I have clarified most of the points. Experts can correct me, if any discrepancies are noticed.
26th October 2013 From India, Mumbai
26th October 2013 From India, Ludhiana