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Dear sir , hear celling limit 7000 per month or minimum wages notified for the employment under the minimum wages act , 1948 (whichever is higher) pls explain it .
The same has been discussed in the following link. Please follow.

HI All,
i need your help as my company is paying bonus for last financial year-2015-16 to all the employees out of which few are based as delhi & few are from haryana.
and basic salary for Delhi based employees are 11500/-
Haryana based employees are-9000/-
so can u please guide me how to calculate their Bonus amount .

Hello sir
Iam employee of a private company of salary 13000/p.m in financial year 2015-16. The company started on 1sep 2015 and i have joined on 1 oct 2015. If i am eligible ro bonus or not??. If am eligible to bonus how to calculate the bonus either it has to taken fully financial year or not??
Calculation of minimum bonus
1. 13000x8.33%x12 or
2. 13000x8.33%x6 or
Maximu bonus
The company has fixed the bonus amount to 10000/-
Plese suggest me how much amount i can be received

Respected all,
I wanted to know the bonus calculation. I believe that no. of days are taken into account while calculating bonus. Pls guide that, if we consider days as per monthly attendance, we deduct unpaid leaves or absent days/ penalties due to late coming . Then whether we can consider a paid med. leave in counting present days or not?
Thanks & regards
Archana M

If you have worked only for 6 months, how can you get bonus for 12 months????
Now, the entire discussion leads to a conclusion that if your salary exceeds Rs 7000, your bonus will be calculated based on 7000 and not on the actual salary received. Therefore, unless otherwise agreed upon, your bonus will be calculated at the rate of 8.33% or such higher percentage as decided by the management on 7000 for six months.
If you have been on loss of pay leave, such leave days can be deducted from this 7000 in order to arrive at the actual bonus qualifying salary.
Salary means actual salary paid whether you were present for work or were on leave with salary.
All paid days will be counted as days present for the purpose of bonus calculation

sir, our security guards monthly 4 or 5 days Lass of pay how to calculate security Guards Bonus new Act Basic- 1979 DA - 4402 Total B+DA =6351
Pay based on what he had earned excluding overtime. Simple. Madhu.T.K
Sir, again i wish to talk on calculation of attached sheet.
in case of Mr. G Prakash Kumar, in april month actual salary is Rs.6500/- and same amount took for bonus calculation where bonus calculation limit minimum Rs.7000/- .
am i right ?


1.An employee who is drawing salary or wages not exceeding Rs.7000/-per month,is entitled to get bonus on entire salary or wages or minimum wages,whichever is higher.

2. An employee who is drawing salary or wages between Rs.7000/-per month and Rs.21000/-per month,the bonus payable to him is to be calculated as,if his salary or wages were Rs.7000/-per month.

3. An employee drawing a salary or wage exceeding Rs.21000/-per month is not entitled to get bonus as per payment of Bonus Act.


1. An employer is bound to pay his employee every year a minimum bonus of @8.33% of the yearly salary or wage or Rs.100/-whichever is higher,whether he has allocable surplus or not.

2. If in any year the allocable surplus exceeds the amount of minimum bonus payable to the employees,the maximum bonus payable by the employer to his employee in the particular year is @20% of the yearly salary or wages.


- For the purpose of calculation of bonus salary or wages includes basic salary,dearness allowance/ special allowance only,but does not include other allowance such as overtime,HRA, Conveyance,Travelling Allowance,Monthly Bonus,Contribution to PF,Retrenchment Compensation,Gratuity or commission.


1. Bonus must be paid within a period of 8 months from the close of accounting year i.e. April to March.

2. If any disputes about the payment of bonus is pending before any authority,then bonus must be paid within one month from the date of awarded by any such authority.


- Section 32 provides that the act shall not apply to certain classes of employees. Clause(vi) refers to " employees employed through contractors on building operation". This clause has been deleted by the Payment of Bonus Amendment Ordinance,2007 with retrospective effect from 1st April 2006. The said class of employees is therefore,entitled to get bonus w.e.f 1st April 2006.


- Section 8,relates to the eligibility for bonus. If a seasonal worker has worked in an establishment for more than 30 working days,he shall be entitled to get bonus.


1. Eligibility for employees:

a) The act provides for enhancing bonus calculating ceiling from Rs.3500 to Rs.7000 per month or the minimum wages for the scheduled employment whichever is higher.

b) The eligibility limit for payment of bonus from Rs.10000 per month to Rs.21000 per month.

2.Calculation of Bonus: As per section 12 of the act, now calculation ceiling of bonus raises from Rs.3500 to Rs.7000 per month.

a) The maximum bonus payable to an employee (20% of Rs.7000 X 12) become Rs.16800/ for the year or more, if minimum wages are more than Rs.7000/-per month.


1. A register in "Form No. A" showing computation of allocable surplus.

2. A register in "Form No. B" showing set-on & set-off of the allocable surplus.

3. A register in "Form No.C" showing details of the bonus due to each of the employee & deductions u/s 17 & 18 and the amount actually disbursed.

4. Annual return in "Form No.D" within 30 days

$$$ SET-ON

- Where for any year the allocable surplus exceeds the amount of maximum bonus payable to the employees,the the excess shall (limit of 20% bonus of total salary or wages) be carried forward for being set on in the succeeding year and so on to be utilised for the purpose of payment of bonus


- Where for any year there is no surplus in respect of that year falls short of the amount of minimum bonus payable (i.e.8.33% ) i.e. there is no amount or sufficient amount carried forward and set on which can be utilised for the purpose of minimum bonus, then such minimum amount shall be carried forward for being set off in succeeding year and so on.

Thanking You!

I hope that this information will be plays a vital role when you are going to bonus calculation .

Thanking You!



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