Bonus - Bonus Calculation [Thread 42077]

Is there a law to give bonus compulsory to the employees. Please guide me in the Calculation of bonus

Dear Friend,
To my knowledge,
Bonus has to be given to all the employees under the Payment of Bonus Act - 1965. As per act, the Minimum bonus is 8.33%, Maximum Bonus is 20%.
Regards
S. Achuthananda

Hai plz check this
The Bonus Plan first calculates a Bonus Fund. This is the actual amount of money that the organization is prepared to allocate for bonus use. Next, an average performance appraisal rating is determined for each employee.
If an employee scores higher than a pre-determined level, he or she is bonus-eligible. The size of the bonus paid depends on the total number of Bonus Points to which an employee is entitled.
The number of Bonus Points is determined by both the employee's performance (as reflected in their average rating) and the employee's current salary range.
Finally, a simple formula is used to exactly allocate the money in the Bonus Fund to all eligible employees.
Full Description
There are five separate steps in the Bonus Plan -
Calculate the Bonus Fund
Determine Bonus Eligibility
Select Bonus Band
Select Salary Band
Calculate Individual Bonuses
For more information you can visit this web link
#bonus
Regards
Shilpa

Bonus is payable my Bonus ACT. Books on the act is available in market you can go and buy for in-depth detail.
As far as Factory work are concerned Bonus is applicable if you agreement with the union is so or else as per the company policy.
Further Bonus is calculated on gross profit minimum bonus payable is 8.33% and maximum is 20% of the Basic and DA.
Again Bonus is applicable to only those who are drawing salary of 3500/- (Basic + DA) or below.
The calculation formula is 2500 x 12 =x*20%
2500 is the bottom line as per the act you cannot calculate below this figure.
regards
Shakila

Hi,
If you look at statutory point of view, Bonus is to be paid under the payment of bonus act, 1965 and the act says that the employees whose gross salary is below Rs.3,500/- should be paid bonus. Bonus is to be paid @8.33% of annual gross salary of such employee. The maximum bonus that can be paid to an employee is 20% of annual gross salary.
But nowadays, all companies are giving bonus to their employees as a goodwill gesture and motivation factor.
I believe, no company gives a salary below Rs.3,500/- to their employees. So the stautory obligation never comes to a question.
regards,
srihari rao

Dear Shilpa,
To my knowledge, bonus is calculated on the basis of the Payment of Bonus act 1965, not on the basis on performance.
As per your description, it is applicable to individual performance appraisal.
Regards
S. Achuthananda

Hai Achuthananda thanks for your information
Till now i have not calculated any bonus to anybody
Just i had information, so i shared
Anyway thanks
Regards
Shilpa

Dear Hr Friends
another point is that the employee should complete 30 days of working
for getting bonus
regards
M.Alphonse :lol: :lol: :lol:

Good Piece of Information,,, Thank You,,,
For More on that, Pls Click the following links,
<link no longer exists - removed>
Regards
Mohamed Sardhar
093831 93832

Dear Friends
I still have a confusion, if a person salary is 9504 basic + 7776 DA how should i proceed with a minimum of 8.33%