Apex Management
Labour Laws Consultants
Rdsyadav
Educator, Management Consultant & Trainer
PL Kanthan
Proprietor
Koolakash02
Business Hr
Somnath Bhattacharya
Business Associates
Pkpatodia
Partner
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I have an quarry regarding bonus calculation details are as below mention –
Minimum wage of Rajasthan (5226)
Actual wages paid of our company (5500)
Bonus Ceiling Limit (7000)
Please suggest on which I need to calculate bonus.
Actual wages is > Minimum wages or < 7000
Waiting for your reply….!

Hi Mr. Soni,
You have to calculate Bonus on the actual wages paid i.e, it can be on Basic or Net (Depending on your company policy).
Minimum Bonus : 8.33%, Maximum Bonus: 20%.
Eg:
1) Net Wages paid 5500
2) Bonus = 5500 * 60% * 8.33% = 274.89/-
The Maximum Bonus payable is ceiling of Rs.7000 ie., Rs. 1,400/-
Regards,
K. Akash

Dear Prem Soni,
You have to pay bonus on state minimum wages or Rs.7000/- which is higher. In your case, your wages are lower then Rs.7000/- as such you are required to calculate statutory bonus on Rs.7000/- per month.
P K Sharma

Dear Mr. Soni,
My understanding is:
Section 10 – already speaks about minimum amount to be paid – 8.33% of earned salary / wages or Rs. 100/= whichever is higher
Section 12 – speaks about maximum ceiling amount to be considered for the purpose of bonus calculation
As per the recent amendment – Rs. 7000/= or minimum wages whichever is higher means if the notified minimum wages are more than Rs. 7000/= the bonus required to be calculated @ minimum wages.
In your case, you can confine your bonus calculations to Rs. 5226 – notified minimum wages or actual wages Rs. 5500/= subject to your company’s policy decision.
Bonus need not be calculated for the ceiling limit Rs. 7000/=

Dear Prem Soni,
You have to pay bonus on state minimum wages or Rs.7000/- which is higher. In your case, your wages are lower then Rs.7000/- as such you are required to calculate statutory bonus on Rs.7000/- per month.
P K Sharma
================================================== ==========
Dear Prem,
As above PK Sharma Statement is 100% right, but you can add working day in above calculation like
the salary is below 7000 PM the if, employee absent 1 days in particular month and this month working day is 26 then bonus calculation is
bonus calculation formula is = 7000 / Working day * Actual working days (month working day-actual working day)
Paresh Patel
Asst. Manager
Pharmatech Process Equipments

Minimum wages of raj.. Of unskillied 5226.
Situation:
1) your emoloyee basic salary is below from minimym wages..... Then you have to pick 5226 fir calculation.
2) your employee basic salary is more than minimum wages like 6200. The you need to pick 6200.
3) your employee basic salary is like 8000 then you can pick 7000(celling limit).
Celling limit is upper limmit as per new revised bonus act.
Minimum wages are lower limit.
I done bonus work in my company and confirmed all above with dept also.

As per New Bonus Act, the following points are bit confusing:
1. The Bonus to be calculated whether @ Rs.7000/- or Minimum wages which is on higher basis.?
2. Whether the minimum wages lesser the amount of Rs.7000/- then Bonus Calculation will be on lesser amount?
Kindly guide us
S,N.Bhattacharya
Business Associate
Ual-Industries Ltd,
16, Mayfair Road,
Kolkata 700 016

Dear sirs,
The said BA Amendment needs full reading from which it is revealed that in case the minimum rate of salary in each category (un-skilled, semi-skilled & skilled etc) in scheduled employment as fixed by UP Government / Appropriate Governments under Minimum Wages Act is higher than Rs. 7,000 /- in that event the calculation shall be made at that higher rate fixed by Government otherwise it shall remain limited to Rs. 7,000 /- per month. It is further submitted that in UP and almost in all states the wages revises every six months ; thus the earned wages as per revised wages shall be required to be taken into consideration for that period(s).Further in UP and possibly by other States , MW are different for Scheduled employment who employ less than 50 workers and for more than 50, the MW are different as WAGES are notified under ID Act. These aspects must be understood when interpreting Notifications before calculation of Bonus payable.
Regds,
RDS Yadav
Labour Law Adviser,
Navtarang HR Services,
NAVTARANGHRS(AT)GMAIL(DOT)COM

Dear Mr. Soni,
Section 10 – speaks about minimum amount to be paid – 8.33% of earned salary / wages or Rs. 100/= whichever is higher
Section 12 – speaks about maximum ceiling amount of Rs.7000/- only in cases where the wage or salary is more than the threshold limit, in such cases applicable ceiling to be taken into account is Rs.7000/- or state Govt notified minimum wages whichever is higher for the purpose of bonus calculation.
In the instant case the provision applicable is Section 10 and not Section 12 since actual wages paid is less than Rs.7000/- and also Govt notified wages is also less than Rs.7000/-.
You are to pay bonus on actual earning i.e. Rs.5500/-@ 8.33% or as you may wish.
Patodia

Dear Mr. Soni and others,
Do you employ less than 50 workers ?
Do you fall under Scheduled employment under Min. wages Act?For example; Glass mfg industries are in list of Scheduled employment.
Are you engg. company with more than 50 workers?
Read with answers the BA AMENDMENT and MW notification together to reach right solution.
Regds,
RDS Yadav


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