Confused About Bonus Calculations? Need Help with Factory Case

Dear All,

Please let me know if the bonus is calculated on ₹3500 - is that correct? What is the amount for a bonus of ₹10,000?

Please assist me as I have a case in my factory. I am awaiting your reply.

Thank you,
Karamvir

Dear Mahr, Bonus is calculated on ₹3500/-, which means someone says that if anybody has worked 30 days in any year, that person will be eligible for a bonus. Is this correct? It means one person has worked for two years and then leaves the organization. How much bonus will that person be eligible for? Is this ₹3500/- including basic + DA correct?

Dear Karamvir,

The ₹10,000 limit is for applicability. This means that those whose basic salary is less than ₹10,000 per month are entitled to a bonus, and ₹3,500 is the maximum liability on the employer for the bonus. The employer can pay a bonus of more than ₹3,500 depending on the employer's policy. However, no one can claim a bonus of more than ₹3,500 for one year.

Thanks and best regards,

Rs 10,000/- is the eligibility criteria for coverage of employees, but the calculation of Bonus shall be based on Rs 35,000/- irrespective of what the employee is receiving.

Re: Calculation of Bonus - Urgent Reply

Dear Gurav, please be guided by the information below for the payment of the bonus.

Two issues are to be considered:

Salary Eligibility for Bonus
If your salary is less than ₹10,000, you are eligible for a bonus as per the Act.

Bonus Calculation
The bonus shall be calculated on ₹3,500 if your salary is more than ₹3,500. Please refer to the example for more clarity.

Bonus Calculation Examples

Case A: Monthly wages greater than ₹3,500/-
- Gross Monthly Wages of Workman "A": ₹5,190
- Bonus Payable Wages of Workman "A": ₹3,500
- Bonus Payable at the existing rate assuming that the workman comes regularly: ₹3,500 * Bonus rate * 12 months

Case B: Gross Monthly wages less than ₹3,500/-
- Gross Monthly Wages of Workman "B": ₹3,120
- Bonus Payable Wages of Workman "B": ₹3,120
- Bonus Payable at the existing rate assuming that the workman comes regularly every month: ₹3,120 * Bonus rate * 12 months

Please click the link below for more information: https://www.citehr.com/124677-calcul...#ixzz0lvRz8Xku

Regards

Dear employees,

Employees who have worked for a minimum of 30 days in the accounting year and are drawing a salary of Rs. 10,000 or less will be eligible for the payment of Bonus. However, it will be calculated on the basis of a monthly salary of Rs. 3,500.

Thank you,
Mahesh Pandey

Hi Karamvir,

₹10,000 is the ceiling, which means employees with a salary less than or equal to ₹10,000 (Basic + DA) are only eligible for a bonus. This is the criteria. However, the calculation ceiling is ₹3,500. The monthly calculated salary cannot be more than this even if a person has a basic of ₹10,000.

Example:
Employee A - Basic + DA - ₹8,000
Calculation - ₹3,500 * % will be the bonus for him based on the number of months worked.

Regards

Bonus Calculation Simplified

Bonus calculation is so simple. Please do it in a simple way:

1. If the salary is equal to or less than ₹3,500, then take the real amount of basic.
2. If the salary range is greater than ₹3,500 and less than ₹10,000, or equal to ₹10,000, then assume it as ₹3,500.

For example, suppose an employee "A" has a basic salary of ₹5,000. In January, his net payable is ₹5,000, February = ₹4,900, March = ₹5,000, April = ₹2,500, etc., until December.

Write down all months first in a column of the sheet, i.e., January, February to December. Secondly, put ₹3,500 in the January column, ₹3,500 in the February column, similarly, ₹3,500 in March, and ₹2,500 in April. Then in the total column = January + February + March + April, in the bonus column = total column * Y%.

Here, Y = minimum 8.33% to 20%, depending on the company's profit and rules. Hope this helps you all.

Hi Karmavir,

I am an accountant at a contractor company. My question is, is there any refund facility for contractors in WCT at 4%?

Please tell me.

Johnson