Bonus Calculation As Per New Bonus Ammendment2016 - XLS Download - CiteHR
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Applicability of statutory bonus - impact of Amendment Act 2015



• Applicable to all employees whose basic + DA ('eligible salary') less than Rs.21,000



• Minimum bonus payable is 8.33% of eligible salary and maximum bonus 20% of eligible salary



• If 8.33% of eligible salary exceeds Rs.7,000 per year, then the statutory bonus limited to Rs.7,000 or Rs.583 per month



• Statutory bonus payable on monthly also based on actual number of days worked, etc (excluding LOP's)



• The revised bonus limits as given above are applicable from 1 April 2014



• Every employee whose salary not exceeds Rs.21,000 per month eligible for statutory bonus



• Every category of employees, including skilled or unskilled, supervisory, managerial, administrative, technical or clerical works



• 8.33% is the minimum bonus and the amount increases when the profit of the entity grows-up



• Maximum bonus payable to any employee, even if they are making good profits limit to 20% of eligible salary - Rs. 16,800 for the year or Rs. 1,400 per month



• Minimum or maximum bonus depends on "Allocable Surplus" available to the entity - calculation based on the formula given in the Rules / Act



• Bonus may be paid on monthly basis, however employees cannot demand for monthly payment. Similarly employees are eligible for the proportionate bonus at the time of resignation / retirement / termination.



• If the statutory bonus payable is less than the minimum wages, then the entity need to pay atleast the amount equal to the minimum wages



• If bonus accurately not computed and paid to the employees, this will become a statutory violation. Any labour law violation in India considered as significant default.
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Dear Sandra Jonsn
From where you got the details.
As per latest amendment, for calculation of Bonus, the Salary limit is Rs.7000/- or actual salary, whichever is higher. Hence the ceiling wages/salary for calculation of Bonus is not applicable.
You have to consider the full only for those whoever draws the salary less than Rs.21000/- pm.
Kindly check.
My company completed 5 years on May 2016 and now they have announced that they will provide bonus for the employees whose basic salary is less than 21000/-.
Please let me know whether the bonus will be calculated effective from June 2016 or they will provide for entire 5 years.
Also, whether they can pay minimum of 583 and maximum 1400 per month for each employee from the date of joining right.
If you have completed 5 years in may, 2016, your employees will get bonus for the financial year 2016-17. Normally, April and May will also be included and bonus will be paid for the entire year starting from April 2016 to March 2017. Anyway it is not paid for the period prior to April, 2016 or five years. It is payable only from the year in which you have completed 5 years or you have started making profits.
Madhu.T.K
@anujsaini - hi, if minimum wage is higher than 7000 then bonus will be calculated on that amount not on 7000. please correct if am wrong if minimum wage is lower then 7000 bonus will be calculated on 7000.
Hi everyone,I am new to this field and I am in a confusion in calculations with this new Amendment into Payment of Bonus Act, dtd:31/12/2015.
Someone please clearify how to proceed on for making payments of bonus.Approx. details are as follows INR:-
Skilled=9200 p.m. (approx.)
Semi-skilled=7200 p. m.
Un-skilled=6200 p. m.
1)Do i have to compute bonuses on higher than 7000/-values for skilled and semi-skilled category? or to compute with 7000/-
2)For unskilled category what will be the amount in bonus calculations? 7000/- or 6200/-
Dear Sir,
our organisation started on 11th Dec 2011 and we compltede 5 years on 10th Dec 2016.and we have not paid bonus til date.Do we need to pay statutory bonus for 2016-2017? or we can pay for 2018.
This is related to:-
"Hi everyone,I am new to this field and I am in a confusion in calculations with this new Amendment into Payment of Bonus Act, dtd:31/12/2015.
Skilled=9200/pm, Semi-skilled=7200/p.m.,Un-skilled=6200/pm" ====
As per the Amendment Bonus shall be payable “Seven Thousand Rupees or the Minimum Wages, whichever is higher”. So in the above case for unskilled you have to pay @ 7000/-. In case of Skilled and Semi-skilled the bonus will be calculated @ 8.33% of the Basic+DA earned during the year. However, if the amount comes less than Rs. 7000/-, than 7000/- will be payable as Bonus (Being minimum amount).
Hope you will agree with my point. Fellow members can put more light on the matter.
the revised bonus act says that the calculation of bonus will be done on the min basic+DA or Rs 7000/ which ever is more
No, this applies only when the Basic +DA is more than Rs 7000. If the actual Basic + DA is less than Rs 7000, you can pay bonus based on that actual amount paid by you whereas if the basic + DA is more than 7000, then it will be on 7000 or the statutory minimum basic wage plus DA as applicable whichever is higher.
Madhu.T.K
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