Bonus Calculation Clerification

The answer depends on how much of basic plus da have you paid him.
If you have paid of ₹6000 then you must pay full bonus of ₹3500 x 8.33%
If the basic paid is less, then bonus must be proportionally reduced.
Incidentally deduction of leave without pay is actually required to be done based on 26 working days in the month and not 30/31 Callander days.

The word 'days worked' is not defined under the Payment of Bonus Act.Hence the days for which wages are payable can be counted as days worked ,ie in this case 30.So he is entitled for bonus for 30 days.

Yes, Mr.Varghese, your presumption is correct in so for as "the days worked" is concerned. But, if we take into account the qualifying phrase occuring in the very same section 8 of the Payment of Bonus Act,1965 " for not less than thirty working days in that year", I am afraid that any employee who has worked for exactly a whole calender month whether it be of 31 or 30 or 28 days inclusive of paid leave and holidays and gets his employment terminated the following day would not be eligible for bonus for that year.

Yes I understand the spirit of your comments.I am against any employee working in any establishment for any particular period only to get qualified for a particular benefit and quit employment on the next day.

For the Payment of Bonus, there are 2 things to be considered:
1. Eligibility- The employee should have been paid for minimum 30 days in that bonus accounting year.
2. For a month eligible salary limit for Bonus is RS.3500/-. This is for full working days without LOP.
3. If there is LOP, this will be reduced.
4. For example for 1 day of LOP- if it is in Apr- 3500/30*29 & if it is in May-3500/31*30, based on the workings for reduction of salary for LOP.

Under Section 8 of Payment of Bonus Act, 1965 as amended, Eligibility for bonus is
"Every employee shall be entitled to bonus, provided he has worked in the establishment for not less than 30 working days in that year".
The clarification will satisfy the query of Mr. Saswata Banerjee.
M. A. KULKARNI

As per the statutory norms a minimum of 8.33% of basic is must to an employee who has served for a month irrespective of one day leave. It depends on the company policy how the ceiling is fixed for bonus. ( 8.33% to 20 %). so ceiling (fixed by the employer) divided by 12 months * no. of days (in this case - 31 days). so not a single day will be left without payment of bonus under this formula. Your employee is eligible for bonus.
Regards,
Sathish G

As per me......The employee is not eligible for bonus as Section 8 says "not less than 30 working days" & to clarify the working days Section 14 describes the days "deemed to have worked in an establishment'.

Dear friends,
I shall quote Section 14 in The Payment of Bonus Act, 1965 as under.
"14. Computation of number of working days.—For the purposes of section 13, an employee shall be deemed to have worked in an establishment in any accounting year also on the days on which—
(a) he has been laid off under an agreement or as permitted by standing orders under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment;
(b) he has been on leave with salary or wage;
(c) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and
(d) the employee has been on maternity leave with salary or wage, during the accounting year."
According to the above section, if an employee get salary for 30 days (even if the actual working days attended is less); he / she is eligible for bonus.
Abbas.P.S

Mr,Abbas.P.S,
I agree with you. Also I feel that the Authorized Leave with out wages (LWP) also has to be taken into account for consideration of Bonus.