Executive Human Resource At Emcure Pharmaceuticals
G.m. - Hr
Private Consultant On Labour Laws
Deputy Manager - Hr
Kaushik Vartika
Assistant Manager Hr
+8 Others

Dear seniors,
Please let me Know how to f calculating the Bonus
We have decided to given bonus to employees 8.33%
For the following condition how to calculate
1. “A “ Employee Basic Rs .2500 and DA Rs.500 = total Rs 3,000
2. “ B” Employee Basic Rs .4000 and DA Rs.3000 = total Rs 7,000
3. “c” employee Basic Rs .12000 and DA Rs.3000 = total Rs 15,000
19th May 2014 From India, Coimbatore
Dear Sir,
As per Bonus Act, minimum bonus is 8.33% of Bonus salary limit i.e.3500/-
For A you have to give bonus ;3000*8.33%=249.90 * 12 month or Actual working month (Min.30 days working in year)
For B & C bonus will be :3500*8.33% =291.55*12 month or Actual working month (Min.30 days working in year)
19th May 2014 From India, Surat
Dear Sir,
One correction in above my post that "C" is not elegible for Bonus.
as Maximum Bonus salary limit is Rs.10000/- you mention that the "C" salary is more then 10000/- hence he is not elegible for bonus, you may give them ex -ratio.
19th May 2014 From India, Surat
Ensure the calculation is based on the earned wages and not on fixed. Most of the companies are paying bonus to all employees/managerial cadre irrespective of their salary bracket. So ensure that the payouts of bonus doesn't create any issues amongst the non eligible employees.
20th May 2014
The Payment of Bonus Act is normative legislation. That is to say that you can't go below the norms viz. minimum percentage, minimum quantum, etc. If the employer chooses to pay bonus for employee drawing Rs. 10000+ pm or chooses to pay bonus at actual percentage (& not merely Rs.3500) it will not be illegal.

21st May 2014 From India, Mumbai
Dear shinde as,

In reference to your query, I wish to bring to your knowledge that the upper limit of Rs.3500/- for the coverage of employees under the payment of Bonus Act,1965 has been enhanced to Rs.10,000/-. As such,the definition of 'employee' stand amended as under:-

Section 2 (13) "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding [ten thousand rupees] per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied;

Similarly Section 12 of the Act is also amended to read Rs.2500/- to Rs.3500/- for the purpose of calculation of the bonus, which reads as under;-

Section 12.Calculation of bonus with respect to certain employees- Where the salary or wages of an employee exceeds (three thousand and five hundred rupees per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wages were [three thousand and five hundred rupees] per mensem.

A copy of the notification is attached herwewith.

BS Kalsi

Member since Aug 2011
21st May 2014 From India, Mumbai

Attached Files
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File Type: pdf Payment of Bonus Act-Notification (2007).pdf (316.3 KB, 3435 views)

What about set off and set on. why dont we calculate as per formula.
27th May 2014 From India, Mumbai
Bonus Limit has been enhanced .
4th January 2016 From India, Delhi

Attached Files
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File Type: pdf bonus act amendment gazette copy.pdf (88.1 KB, 2337 views)

I need to know about Bonus Act Amendments and also that it should be part of CTC or not. We should pay this on monthy basis, quarterly or yearly.
21st September 2016 From India, Bengaluru
Dear All,
I have a query regarding whether the bonus should be paid on Fixed Basic or Earned basic.
and 2.if the basic has been revised in mid of the year which basic has to be considered for the calculation whether revised or as per monthly paid.
please help me with this query at the earliest.
8th October 2016 From India, Bangalore
You can't decide the % of bonus.It is dependent on figures that appear in company's Form A & Form B. If the org's profit is from service charges then probably it can declare bonus of 8.33%.
9th October 2016 From India, Mumbai
there is 2 conditions for calculation of bonus,
1. 7000
2. minimum wages
i have two questions pertaining to calculation of Bonus.
if minimum wages is more than 7000/-
a. minimum wages to be considered as on which date ? 31st March or what ?
b. average of everymonth's minimum wage to be considered ?
Please advise.
Thanks & Regards
Vadodara, Gujarat.
11th October 2016 From India, Vadodara
Bonus is to be calculated on monthly earned wages i. e. Basic +DA. Month on month the wages have to be compared with minimum wages declared by authorities.
12th October 2016 From India, Mumbai
Dear Amit,
In reference to your query, in my opinion as we take average of monthly salary drawn by the employees in the accounting year, similarly the average of minimum wages drawn by the employee should be basis of calculation of bonus provided his minimum wages are higher than Rs 7000/-.
BS Kalsi
Member since August, 2011
13th October 2016 From India, Mumbai
Dear All I have a query that what percentage of Employer contribution of PF in Jammu & Kashmir Province. please help me with this query at the earliest. Regards Prakash
19th January 2017 From India, Delhi
Dear Prakash,
The provisions of EPF & MP Act, 1948 are not extended to Jammu & Kashmir rather there is separate Act called as "The Jammu and Kashmir Employees Provident Fund Act, 1961". The employer's contribution to PF is 12℅ of the basic plus Dearness Allowance.
BS Kalsi,
Member since August, 2011
20th January 2017 From India, Mumbai
Is payment of bonus to contractual labour is compulsary ?If Yes ,so how to calculate the bonus amount.
4th February 2017 From India, Delhi
Dear Ashu,
The Payment of Bonus Act,1965 does not differentiate between a contract worker and other workers except Apprentices.The only condition is that one should have put in not less than 30 days in that year. It casts responsibility on all employers , covered by the Act, to make payment of bonus to their employees subject to conditions mentioned in the Act. The contractor who engages the contract labour, has to make payment of bonus ,if applicable.
In reference to your second query, It is mentioned here that there is no difference in calculations of bonus.It is the same as done for the regular employees.
BS Kalsi,
Member since August, 2011
7th February 2017 From India, Mumbai
Dear Mr. Sudhir, Can you please provide the google site details from where I can get this Gazette of India’s information.
17th May 2017 From India, Kolkata
Dear All,
The bonus amount taxable or not?
15th January 2018 From United States, Fremont
Dear Concern,
Could you please let me know that, If a consultancy is under Shop & Establishment act is the consultancy must release the bonus to staff or It depends on Employer wish. please let me know.
3rd November 2018 From India, Bengaluru
Dear All,
I Want to Know, how to Calculate Bonus, through this Example. Some One Gross Salary Rs. 25000/- & his salary Structure ( Basic All.- 12500, Hra All.- 6250, Medical All-1250, T.A.-1600, Other All.-3400). & his is Working 6 Months. & he is working which state where Minimum Wages Rs. 13000/-) so Please Resolved My Qurery.
1. Bonus is Calculate on (Basic+DA) or Gross Earn Salary ?
2. He is eligible or Not ( According to Wages Celling Limit Rs. 7000/- to 21000/-) ?
3.. His Bonus Caluclate on which Basic ( Rs. 12500/- or Rs. 13000/-) ?
23rd August 2019 From India
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