Dear all, I have a doubt about the bonus calculation: My company's minimum wage is 9400 for unskilled workers.
Now, whether i have to calculate my bonus for the employees on 9400 or 7000. please clarify in detail as I have seen a lot of posting confusing so much.
if suppose employee's wage is below 7000, what is the calculation? request all the experts please clarify and explain in detail.

From India, Hyderabad
Mandatory bonus calculation is 8.33% of basic and DA. However it can not be less than 7000/- in any case.
From India, Vadodara
professionals, please explain in detail....
From India, Hyderabad
As per Bonus Act revision you have to pay bonus on ceiling Rs. 7000/- or Minimum wages whichever is higher. hence it can not less than Rs. 7000/-
From India, Mumbai
As per Section 12 of PoB Act, "Where the salary or wage of an employee exceeds seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher per mensem, the bonus payable to such employee under Section 10 or, as the case may be, under Section 11, shall be calculated as if his salary or wage were seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher per mensem.

Explanation: For the purposes of this section, the expression ‘‘scheduled employment’’ shall have the same meaning as assigned to it in clause (g) of section 2 of the Minimum Wages Act, 1948."

In your case, since your minimum wage is Rs.9400 which is exceeding Rs.7000/-, bonus payable should be computed on Rs 9400/-. Further, the bonus salary should be computed monthly so as to include any revisions in minimum wages in respect of the accounting year.

The employees having 21000/- (Basic + DA) have entitle for Bonus, but the minimum bonus would be 7000/-
From India , Gohana
If the Basic and DA is below 7000/- per month, Bonus should be calculated on actual basic. If Basic and DA is 7000/- or more it should be on 7000/- or minimum wages which ever is higher.
In the instant case the minimum wages is 9400/- per month i.e Basic & DA should not be less than 9400/- per month rather may be more but not more than 21,000/- per month.
S K Bandyopadhyay ( Howrah, WB)
+91 98310 81531

From India, New Delhi

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