The relevant section in payment of bonus act for proportionate reduction in bonus is given below:
"13. Proportionate reduction in bonus in certain cases -
Where an employee has not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 8.33 per cent of his salary or wage for the days he has worked in that accounting year, shall be proportionately reduced."
My below interpretation of the above section is correct or not?
Suppose an employee works for only 200 days, and his daily wages are Rs 100 per day and the bonus rate is 10% then he is entiled to a bonus of 200 X 100 *(10/100)=2000
For example , the total working days in the factory in which the employee is working is 240 days
In such a case the bonus payble would be =
actual bonus payble - (minimum bonus payble/numbe of days worked)
i.e., 2000 - (100/200)
is this correct?
"13. Proportionate reduction in bonus in certain cases -
Where an employee has not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 8.33 per cent of his salary or wage for the days he has worked in that accounting year, shall be proportionately reduced."
My below interpretation of the above section is correct or not?
Suppose an employee works for only 200 days, and his daily wages are Rs 100 per day and the bonus rate is 10% then he is entiled to a bonus of 200 X 100 *(10/100)=2000
For example , the total working days in the factory in which the employee is working is 240 days
In such a case the bonus payble would be =
actual bonus payble - (minimum bonus payble/numbe of days worked)
i.e., 2000 - (100/200)
is this correct?