Adv Sujeet Salkar
24th August 2018
if his/ her gross salary is more than 21k means there is no need of ESI benefit. The Pf benefit is only eligible for that employee.
The deduction is on Employee contribution 10% and professional Tax from the employee end.
Thanks & Regards
24th August 2018 From India, Chennai
Under Bonus Act, there are two definitions of Wages
(i) Wages for eligibility criteria (Bonus wages ceiling) and
(ii) Wages for calculation of Bonus for eligible employees.
In the first case (while checking the eligibility criteria) the whole wages is countable (which should not be excess Rs. 21,000). Pls see the below abstract of Bonus Act:-
"salary or wage" means all remuneration (other than remuneration in respect of overtime work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were
fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee
on account of a rise in the cost of living), but does not include--
(i) any other allowance which the employee is for the time being entitled;
(ii) the value of any house accommodation or of supply of light, water, medical attendance, other amenity, any service, any concessional supply
of foodgrains or other articles;
(iii) any travelling concession;
(iv) any bonus (including incentive, production and attendance bonus);
(v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;
(vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;
(vii) any commission payable to the employee.
But in the second case (while calculating Bonus) than Wages means Basic+DA. It should be 8.33% on the earned Basic+DA for the year or Rs. 7000 whichever is higher.
Senior members can throw more light on the matter.
27th August 2018 From India, Delhi
(i) Minimum Bonus:
Rs.7000/- is the minimum bonus as per the act. That is 8.33% of Annual earned BASIC+DA. Either Rs.7000/- or actual whichever is less.
(ii) Maximum Bonus:
Annual earned BASIC+DA x 20%. That is either Rs.16,800/- or actual which ever is less.
If DA is paid in salary, we can add DA or other wise DA is taken as zero.
Bonus to be paid whether minimum or maximum shall be decided based on the guidelines given in the act.
28th August 2018 From India, Chennai