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sunijajpur
Can we settle the bonus with a monthly salary? if yes, then which act or rules allow us to do this?
From India, Bikaner
vmlakshminarayanan
929

Hi

I think you are referring to statutory minimum bonus of 8.33%.

As per the amendment on the Payment of Bonus Bill passed in 2015, if the gross earning of the employee is below Rs. 21,000, employers are liable to pay bonuses. The bonus will be calculated as follows:

If salary is equal to or less than Rs. 7,000, then the bonus will be calculated on the actual amount by using the formula: Bonus= Salary x 8.33 / 100

If salary is more than Rs. 7,000, then the bonus will be calculated on Rs. 7,000 by using the formula: Bonus= 7,000 x 8.33 /100

Note: Salary means: Basic Salary + Dearness Allowance.

If you are paying overall monthly salary instead of basic+Da then it would be good.

From India, Madras
Madhu.T.K
4210

You can pay 8.33% of the salary as bonus subject to the above conditions explained by Lakshmi Narayan. But you cannot fix the rate at 8.33% because the rare of bonus should depend on the profits earned by the company. Depending upon the profits the rate shall vary from 8.33% to 20%. The profits mean the surplus arrived at following the steps elaborated in the Payment of Bonus Act and not the net profits as evidenced by the financial statements of the company alone.
From India, Kannur
suresh2511
246

I would like to add to Mr. Lakshminarayanan and Madhu Jee's comments that, under the amended Payment of Bonus Act, the minimum bonus is computed on Rs.7000 or the applicable minimum wage, whichever is higher.

Regards,
Suresh

From India, Thane
Madhu.T.K
4210

Suresh, that was clarified by Lakshmi Narayan in his post. But I would like to make a correction in your post and that is, it is not the minimum bonus which is computed on Rs 7000 or the notified minimum wages whichever is high BUT if the establishment has higher allocable/ available surpluses the rate of bonus which shall vary from 8.33% (minimum) to 20% (maximum) and the amount of bonus shall be computed on Rs 7000 or the notified minimum wages whichever is high. If you decide to pay 20% bonus, then it shall be calculated on a salary of Rs 7000 or the notified statutory wages only.
From India, Kannur
smdharanimano
4

yes, you can add bonus in monthly salary/wages , Statutory bonus return filing and keeping the record is mandatory.
From India , Pune
Attached Files (Download Requires Membership)
File Type: pdf Bonus act amendment gazette.pdf (85.9 KB, 27 views)

suresh2511
246

Yes, Madhu jee,

I indicated a minimum bonus sum of Rs.7000, however, based on allocable surpluses, the bonus computation on Rs.7000 might be as high as Rs.16800 (20%).
Although Mr. Lakshminarayanan stated in his post that salary meant Basic + DA, some of our junior members get puzzled and so specified as applicable Minimum Wages which can be a maximum of 20% based on allocable surpluses.

Suresh

From India, Thane
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