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

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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
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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)
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.
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.
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.

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

Attached Files
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File Type: pdf Payment of Bonus Act-Notification (2007).pdf (316.3 KB, 3514 views)

What about set off and set on. why dont we calculate as per formula.
Bonus Limit has been enhanced .

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File Type: pdf bonus act amendment gazette copy.pdf (88.1 KB, 2369 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.
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.
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