Yajuvendra Bisht
Executive-hr(personnel)
+1 Other

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Dear Seniors,
Greeting!!!
Kindly Guide Me on Bonus on Below queries
1) Min Bonus ceiling is Rs 3500
2) Bonus Limit is 8.33 to 20 %
3) Bonus Eligibility is 3500-10000
In sec 10 mention that in wages & Salary bonus should 8.33%. What is Wages & Salary. Is it Minimum wages which worker withdraw or Rs 3500 Maximum.
if a person getting 9000 rs salary per month his bonus should calculate 8.33% on 3500 or 9000.
If person absent.for example in year working days 312 but worker done 304 days then below calculation is right or wrong
on 20% of Bonus 3500*20/100=700 Per Month
700/26*Present days
and are employer bound to pay 20%.
and how he calculate %age above 8.33
Waiting for your kind response.
Thanks & Regards
Jagdish

From India
Dear Jagdish,
Celling limit wages & salary is rs. 3500 to rs. 10000/- (Basic + DA), If an employee has salary 7000/- then we need to calculate his bonus on rs. 3500/- not on rs. 7000/-.
On other hand if an employee has salary rs. 11000/- then employer is not bound to pay him bonus.
8.33% = Rs. 3500/- as bonus
20% = Rs. 8400/- as bonus
If company is paying bonus as on 8.33% then calculation is mentioned below :
3500*12 = 42000
42000*8.33% = 3500/- as bonus (Calculation is based on 100% payable days)
If company is paying bonus as on 20% then calculation is mentioned below :
3500*12 = 42000
42000*20% = 8400/- as bonus (Calculation is based on 100% payable days)
Hope it will resolve your issues.
For further query please contact undersigned.
thanks
Sandeep Sharma
9654181816

From United Arab Emirates, Dubai
Dear Sandeep Ji,
Thanks for your kind reply
Just I want to know if person is absent from duty for 5-6 days in a year then can we deduct bonus from Rs 8400 & when an employer bound to pay 20 % bonus.
Thanks & Regards
Jagdish

From India
Dear,
As i mentioned in my earlier email bonus is on payable days, just imagine if an employee has payable days only 340 out of 365 & company is paying bonus on 20% calculation is mentioned below :
8400/365*340 = 7825/- as bonus.
Regarding how to decide the bonus percentage (8.33 - 20%) its totally depend on profit of company, which is described in Form A & B.
thanks
Sandeep

From United Arab Emirates, Dubai
Yes Sandeep is correct the
1. Eligibility for getting bonus is if you receive salary less than 10000
2. If you satisfy above condition than bonus will be calculated on 3500*12*(8.33% to max 20%)
3. Bonus will be calculated on the basis of the number of paid days including leaves
4. Bonus will be calculated on the basis of the profitability( allocable surplus)y of the company in the previous year for which it is due to max. 20%
5. Minimum Bonus that is 8.33% to be paid even if there is no allocable surplus (except in case of new establishment)
6. Salary or Wages in this case includes DA only and no other allowance e.g.OT, HRA and incentives and commissions


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