I would like to know, how to calculate Bonus for employees and the periodicity i.e., from which month of previous year to which month of this year an employee will be eligible for bonus say minimum of 8.33 %. Additional component also can be considered as per individuals performance.
The main doubt is that since usually Bonus chapter opens in the event of DIWALI which occurs in the month of October or November every year, whereas the financial year is April to March and Tax factor also to be considered properly.
Request expert help from you
Thanking you in Anticipation
V.G.KALYANA RAMAN
Manager - HR
+91 98403 22799
From India, Madras
The main doubt is that since usually Bonus chapter opens in the event of DIWALI which occurs in the month of October or November every year, whereas the financial year is April to March and Tax factor also to be considered properly.
Request expert help from you
Thanking you in Anticipation
V.G.KALYANA RAMAN
Manager - HR
+91 98403 22799
From India, Madras
Dear Mr Raman,
Recently an ordinance The Payment of Bonus (Amendment) ordinance was promulgated by The President.
All those employees drawing Basic + DA upto Rs 10,000/- per month are eligible to get Bonus.
For the calculation of Bonus the maximum Basic+DA to be taken is Rs. 3500/- per month.
If you calculate minimum bonus @ 8.33% of (Basic + DA) for the complete year, it will come out to be one month's (Basic+DA). In short the minimum bonus to be paid for the year is one month (basic+da) subject to maximum of Rs. 3500/-
As for period it is taken as Financial year in most cases. However some companies also take the period uptill the month of diwali while calculating bonus.
Amit Goyal
9811558950
From India, Delhi
10Recently an ordinance The Payment of Bonus (Amendment) ordinance was promulgated by The President.
All those employees drawing Basic + DA upto Rs 10,000/- per month are eligible to get Bonus.
For the calculation of Bonus the maximum Basic+DA to be taken is Rs. 3500/- per month.
If you calculate minimum bonus @ 8.33% of (Basic + DA) for the complete year, it will come out to be one month's (Basic+DA). In short the minimum bonus to be paid for the year is one month (basic+da) subject to maximum of Rs. 3500/-
As for period it is taken as Financial year in most cases. However some companies also take the period uptill the month of diwali while calculating bonus.
Amit Goyal
9811558950
From India, Delhi
All those employees drawing Basic + DA upto Rs 10,000/- per month are eligible to get Bonus.
For the calculation of Bonus the maximum Basic+DA to be taken is Rs. 3500/- per month.
I'm being confused with these two statment.
Pls make it clear.
From India, Mumbai
For the calculation of Bonus the maximum Basic+DA to be taken is Rs. 3500/- per month.
I'm being confused with these two statment.
Pls make it clear.
From India, Mumbai
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Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc