Ashutosh Thakre
Hr Professional
Vidyesh Kul
Software Consultant, Lms Expert
Executive (hr)
Hr Ex.
+1 Other

Thread Started by #Anonymous

Hi seniors, One of the employee salary is 6000/- PM plz let me know the bonus calculation weather it will calculate... 6000*12*8.33/100 or 7000*12*8.33/100 Regard Sumit charan
26th May 2016 From India, Jodhpur
The Bonus is Rs. 7000/- or the minimum wage which ever is higher, so it will be calculated on 7000 and not 6000
27th May 2016 From India, Mumbai
If Basic Salary is Rs. 6000/- (Gross Salary Limit is Rs. 21000) then Bonus will Calculate on Rs. 6000/- only, Min. % is 8.33 & Max. % is 20. 6000*12*8.33/100) Regards, S. K. Gupta
28th May 2016 From India, undefined
Sir... according to the rule bonus should be
Calculate on 7000 or minimum wages
Whichever is higher therefore if basic
Salary is 6000 bonus will be calculate on 7000/- ceiling limut not on 6000/-
Pls correct if i am wrong..........
28th May 2016 From India, Agra
Calculate Bonus on Basic or minimum wages Whichever is higher.
In case if basic as per min wages applicable to employee is Rs. 6000/- or less,
the basic will be considered as Rs. 6000.
If Min wages are more than Rs. 6000, then Min Wages. Then Rs. 7000. limit is not applicable
28th May 2016 From India, Mumbai
Yes it is on 7000 or mimimum wages applicable as per schduled employment, such as MW in Paper & paper Board is applicable 8245.25 then it will be calculated on 8245.25.
28th May 2016 From India, Nagpur
Sir... what do you means by minimum wages is it as per minimum wages act.
Then as per act. Minimum wages in our state is 7200 PM does that mean the bonus shall be calculate on 7200 not on ceiling limit 7000/-
Your view please......
28th May 2016 From India, Agra
It should be on actual basic pay subject to maximum ceiling - whichever lower (Maximum ceiling has been raised to Rs. 7000 or MW of state - which ever higher)
7th June 2016
21000 is gross salary or basic salary for bonus celing limit? If a employee take 25000 his gross salary then he/she is liable to take bonus from company ?
7th June 2016 From India, New Delhi
Calculation of Bonus

Taking the demands of the trade unions head on, Section 12 of the Principal Act has been amended to state that where the salary or wage of an employee exceeds INR 7,000 per month or the minimum wage for the scheduled employment, the bonus payable to such employee shall be calculated as if his salary or wage were INR 7,000 per month or the minimum wage for the scheduled employment, whichever is higher.

The Principal Act provided that the bonus payable to an employee shall be in proportion to his/her salary. However, where an employee's salary was over INR 3,500 per month, for the purposes of calculating bonus, the salary was to be assumed to be INR 3,500 per month. With a view to maximise bonus earnings, the Amendment Act has increased the wage ceiling for calculation to INR 7,000 and has also factored in possibilities where the minimum wage payable to such employees may be over INR 7,000, thereby giving employees the flexibility to draw a higher amount as bonus.

While this appears to be yet another attempt made by the Government at ensuring employee satisfaction, the inclusion of the minimum wage component in calculating bonus may hinder with the accounting policies of companies having a national presence. It may be noted that in accordance with the provisions of the Minimum Wages Act, 1948, minimum wage rates may be prescribed at a State as well as a Central level. More often than not, publication of notifications pertaining to minimum wage rates are delayed and have been subject to anomalies. Aggregating relevant data pertaining to minimum wage rates and ensuring that accurate calculations are made, for each state, may obstruct companies in processing the payment of bonuses.
8th June 2016 From India, Mumbai
AVIHR-- Your observation is absolutely right. The purpose of adding minimum wage was an after thought to avoid further modifications to the bonus ceiling limit, which would automatically gets updated along with hike in minimum wages. While the intention is noble, the hassles in implementing for PAN INDIA present companies is unavoidable. Also many people are still confused about the wage for calculation of Bonus should be Basic pay or Rs. 7000/MW which ever higher, which was clarified that the limit of 7000/MW is only for maximum amount of Bonus payable.
9th June 2016
Dear All,
please guide me which month minimum wage consider for bonus calculation.
March month or as per minimum wage for April to September as per minimum wage and October to March as per revised minimum wage.
Best Regards
26th March 2019
Dear Annonymous,
It will be calculated on 6000*8.33/100*12.
BW more then Rs. 7000 then only it'll be 7000*8.33/100*12.
27th March 2019 From India, Delhi
For Bonus Calculation, go through attachment.
28th March 2019 From India, Shillong

Attached Files
Membership is required for download. Create An Account First
File Type: pdf BONUS CALCULATION RULE.pdf (898.4 KB, 123 views)

Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2017 Cite.Co™