PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Doctor Siva Global Hr
Use factoHR and automate your HR processes
Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.
As per the 2015 amendment, when salary exceeds ₹7000 or the minimum wages fixed by the government, bonus is payable on whichever is higher.
Bonus payable will be at a minimum @ rate of 8.33%, and maximum at 20 %
Eligibility: Employees drawing ₹21000 per month or less (basic + DA, excluding other allowances) and have completed 30 working days in that financial year are eligible for bonus payment
Calculation of bonus: As per the amendment on the Payment of Bonus Bill passed in 2015, when wages or salary exceeds ₹7000 or the minimum wages fixed by the government, bonus will be payable on ₹7000 or the minimum wages as fixed by govt., whichever is higher.
Example in your case: The condition here is Minimum Wages is higher than Rs.7000/- Hence you have to take Minimum Wages for calculation.
You have to work out the Bonus for 12,000/- ( indicative and check the correct Minimum Wages) Then take the Total Wages earned by the employee in that Financial Year computed based on Minimum Wage. Then arrive the Total Salary. In that Total Salary earned, Compute 8.33% (Minimum Bonus) or such other higher % as per your Management's discretion/ or Management decides to pay as Bonus based on profit levels and Allocable and Available Surplus.( Your accounts Team might be knowing on this)
The bonus has to be settled within 8 months of closing the Financial Year as per statue
All the Best, God Bless,
Doctor Siva Global HR
From India, Chennai