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bhatt-amisha
Hello HR Experts, I was associated with one of the growing FMCG Companies, where we got one full salary at the time of Diwali entitled as a "Diwali bonus' but the bonus act says that "Bonus is calculated 8.33% Of BASIC +DA." Now, My question is, what is the standard bonus calculation for the additive Company?
From India, Ahmedabad
neeraj-kumar1
Dear,

Bonus is given by companies as per Bonus Act, 1965. Bonus calculation is minimum 8.33% to maximum 20% as per allocable surplus of the company.

Three steps of Bonus Calculations:
1. As per act eligibility of Bonus is only if any employee getting Basic Salary + DA up to Rs. 21,000/-
2. Ceiling of Bonus is Rs. 7,000/-
3. If any state minimum wage is Rs. X/- then Bonus should be at least Rs. 7,000/- or Rs. X/- whichever is higher.

Generally Bonus is paid after 8 months of closing of Financial Year it is approximately near "Deepawali" so, some times this bonus is called "Diwali Bonus" but actually it is "Statutory Bonus" because if someone candidate left job before Diwali. H should be awarded with his/her Bonus in full n final settlement.

From India, Mohali
nanu1953
334

What Mr, Neeraj -Kumar 1 explained, I would like to add that if the organization has been paid bonus at the time of Diwali as 'Diwali bonus' ignoring calculation as per statutory guide line instead full month gross salary is known as customary bonus.

There is no harm of paying more bonus. But it will be better if the Bonus portion is paid as per PB Act and the extra portion as ex-gratia , legally it will be strong footings.

S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in

From India, New Delhi
saswatabanerjee
2385

Dear Amisha

Bonus under the act is payable on basic+DA.
8.33% actually is 1/12, which is a month's salary.
If you are getting a full months' salary, it is probably more than what they are required to give under the law.
Further, if your salary is above ₹ 21000, you are not eligible for bonus
And also, if your salary is above minimum wages, you will get bonus on min wages only (the rule says 7000 per month or minimum wages, whichever higher, but now minimum wages in the country is higher than 7000 anyway)

At the same time, if the company's profit is high, you may be eligible for 20% of annual basic + da as bonus (which is 2.5 months salary, but with the restriction explained above)

As for paying at Diwali, Bonus is payable within 8 months from end of the financial year, which is mostly when Diwali is, so again, few people bother to dispute that part.

I hope this (and the details posted by other members) has clarified that you are most probably not at a loss as compared to what the rules provide

From India, Mumbai
RamGoswami
Sir, where and how is bonus paid recorded. Mean what paperwork to be done.
Also should it be paid in cash or online and how to show that it is a bonus and not a salry or advance or something. I hope i got my point accross. sorry for bad english.
Also if someone whose salary at join is less than 21k but after increments goes above 21k, are they eligible for bonus after this increment?

From India, Hyderabad
saswatabanerjee
2385

Bonus is generally paid along with that months salary or can even be paid separately. In that case process it like an additional payroll run. Documentation should be similar.

However, also ensure form A to D is filed properly and online filing of bonus return is also done.

Incidentally you cannot pay bonus in cash as most states have requirement of bank payment under payment of wages act

From India, Mumbai
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