Statutory Bonus Calculation

Dear Madhu TK
Its my submission that
In case Min Wages are lower than 7000, we should calculate bonus pay on 7000 only
In case of any schedule employment If the minimum wages are higher than 7000 ( Which is the limit prescribed under latest Bonus pay amendment ) why we go for higher side basic for calculation ,
we must concentrate on 7000 as Limit for calculation and the other basis present days.
Whether it will be wrong and why
Suggest

Dear Madhu Sir,
In my state, minimum wages of Unskilled is Rs. 7600. Then now how to calculate the bonus. Should we calculate the bonus on 7000 or on 7600. Please clarify
Regards
Dinesh Kumar

As per the new amendment, it should be done on Rs 7600.
Madhu.T.K

Dear Madhu Sir,

I am here reproducing the the content of section 12 of Bonus Act:

"Calculation of bonus with respect to certain employees. —Where the salary or wage of an employee exceeds [three thousand and five hundred rupees] per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were [three thousand and five hundred rupees] per mensem .]"

Now if we replace with amendment section:

"Calculation of bonus with respect to certain employees. —Where the salary or wage of an employee exceeds [seven thousand or the minimum wages for the scheduled employment, as fixed by appropriate government, whichever is higher] per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were [seven thousand or the minimum wages for the scheduled employment, as fixed by appropriate government, whichever is higher] per mensem .]"

It means if the salary of an employee is less than 7000 or the minimum wages, we should consider the actual wages but if the wages exceeds rs 7000 or the minimum wages then we should consider the higher wages.

when minimum wages is mentioned on the both places then what is the role of Rs, 7000. I think the definition inserted by the amendment is wrong, it should not be whichever is higher but whichever is low. Please clarify.

Regards

Dinesh Kumar

You are absolutely right, if it is like whichever is higher, there will be not be any significance for 7000. And suppose if the minimum wages is Rs 6900, you can not give bonus based on 7000, because the employer is not bound to pay 7000 when the statutory minimum wages is less than 7000 and since the worker has been earning Rs 6900 per month he can not demand a bonus based on a wage which is more than what he has been getting.
Madhu.T.K

Does someone who have not even worked for 6 months entitle for the bonus? if someone has worked for 4 months and have resigned i don't think bonus payment is due to him/her.

Bonus is payable to an employee if he has worked for 30 days in the financial year.
Madhu.T.K

hi ,
My salary is 27500 and my basic is Rs 11590 so for bonus calculation should I hv to take Rs 7000/- or my basic? pl let me know

I used very simple formula in my company according to govt. norms ,
minimum bonus = 8.33 %
maximum bonus = 20 %
basic + da not more then = 7000
so finally your calculation are.
Apr 8000 but calculation from 7000 * 8.33%=583
May 5925*8.33%=494
June 6792 *8.33%=566
July 4615*8.33%=385
your final bonus calculation =583+494+566+385 (2028)

Hi All,
pl. help me , amended law for payment of Statutory Bonus.
Is it Basic +DA or HRA? What is basic minimum wage limit?
Kindly Guide.
Devashree N
7219802041