How Do You Calculate Bonuses for Employees Earning Over Rs. 10,000 in a Profitable Company?

a.lohumi

How will the bonus be calculated if the salary of the employee exceeds Rs. 10,000 and there is profit in the company? Kindly suggest the basis that can be used to determine the bonus or profit-linked incentive payable to an employee.

Regards,
Ashutosh

trisha_hr

Dear Member,

Greetings.

When there is a profit, there is no need to issue a bonus for employees who draw a salary of more than 10K. However, at the discretion of the management, the bonus may be disbursed as ex-gratia.

Cheers,
Trisha
HR Professional

haridhayalan

Hi,

There is no calculation to provide a bonus. The company can decide how much bonus will be provided.

Regards,
Hari

rajanassociates

Dear All,

Ashutosh's reference was regarding the calculation part involving the application of the ceiling, which Trisha has answered well.

VS Rajan Associates Chennai

joyfuljags

Hi, when an employee is receiving 10k as their basic salary, they are not eligible for a bonus. However, if the employer wishes to provide a bonus, they can give any amount as per their discretion, which would fall under ex-gratia.

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