Hi Everyone, Looking for clarification - Bonus Calculation in Karnataka

So if my basic is 21000 = bonus will be calculated as 7000rs = 7000*12 = 84000*8.33% = 6997

6997 will be the bonus payable for the particular year. [ Is this statement correct]
__________________________________________________ ____________________

If Basic is 21001 = I am not eligible for the bonus. Then how will the company be able to pay a bonus for me? will it be 1 month basic be paid in this case? Please clarify.

From India, Bengaluru

Foundation, advanced and integrative courses in the area of marketing for executives →
Promoted: Program in Marketing & Sales Management from IIM Kozhikode (Explore Course)
Bonus is a deferred wages i.e Bonus for financial year 2020--21 will be payable within 8 months of closing of accounts.Therefore, eligibility criteria should be judged based on salary level during that period not on the basis of current salary. If salary was more than 21,000/ per month during the above financial year, there is no eligibility for Bonus.

For calculation of amount of Bonus, it will be required to check 7000/ or minimum wages whichever is higher and calculation will be based on that level.

% of Bonus ( not always 8.33%) will be determined by calculating available surplus, allocable surplus, set on & set off -- not on adhoc basis.

S K Bandyopadhyay ( WB, Howrah)
CEO- USD HR Solutions
98310 81531

From India, New Delhi
As per law if your salary exceeds Rs 21000, you will not be eligible to get Bonus.

As per law, if you come under bonus bracket but your salary exceeds Rs 7000 then bonus can be calculated on Rs 7000 only. However, if the statutory minimum wages notified by the government (of Karnataka) is more than Rs 7000, your bonus should be calculated on that higher amount. Therefore, if the notified minimum wages pertaining to your establishment is, say, Rs 12000, then Bonus should be calculated based on Rs 12000.

The rate of bonus shall depend upon the profitability of the establishment. But once the infancy protection period is over (five years of commencement of year or the year in which the company made profit) the employer is liable to pay minimum bonus of 8.33%. The maximum shall be fixed at 20%

For deciding ineligibility and calculating bonus, the same theory should be applied with regard to bonus qualifying salary. In other words, you cannot take gross salary to make the employee ineligible to get bonus and take only the basic and dearness allowance to calculate the amount of bonus payable.

From India, Kannur
Hi, Thank you very much for your views and time.
From India, Bengaluru

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →






About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHR.Comô

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server