Bonus Calculation Query As Per Recent Amendment - PDF Download

Dear Members,
Can you please clarify the following -
Case 1 - If Employees basic Rs.4000 and Gross Rs. 7000. Bonus will be calculated on Rs. 4000 or Rs. 7000 ?
Case 2 - If employees basic Rs.5600 and Gross Rs.11000. Bonus will be calculated on Rs. 5600 or 7000 ?
Case 3 - If employee basic Rs. 6995 and Gross Rs. 13600 . Bonus will be calculated on Rs. 6995 or Rs 7000 ?
Case 4 - If employee basic Rs. 11800 and Gross Rs. 21000 . Whether this employee come under purview of bonus act ?
Case 5 - If employee basic Rs. 12000 and Gross Rs. 21200. whether this employee come under purview of bonus act ?
Case 6 - If employee basic Rs. 21000 and Gross Rs. 32000. whether this employee come under bonus act or not . if yes what amount bonus will be calculated ?
Regards
Nabarun Basu

Hi,
Greetings of the day!!!
As per recent amendment We have to calculate Bonus on "seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher".
1. Eligibility limit for payment of bonus increased from Rs.10,000 to Rs.21,000
2. Calculation ceiling increased from Rs.3,500 p.m. to Rs.7,000 p.m.
The amendments have been made effective retrospectively from 1st April 2014. Hence we will have to work out differential liability for 2014-15 and make payment accordingly.
Regards,
Ashish

Dear Ashish Sir,
Kindly tell me ...is ESIC deducted from bonus?

Dear Nabarun Basu,
For your kind reference here i am attaching the amended sheet for Bonus Calculation. Find the same and read it carefully and after that if you need any clarification you make me call at given below no. +91 987 176 3456.
By the way Mr. Ashish is very clearly mentioned here, so i don't think you need more clarification.

Bonus is to be computed on basic and DA and has nothing to do with gross
Further, if basic and DA is more than 7000 or minimum wages, whichever higher, then the bonus will be paid on that ceiling amount and not on basic and da.

DEAR MR. NABARUNR
FOR YOUR CASES FROM 1 TO 3 ANSWER IS 7000/- AND EMPLOYEES FROM CASE 4 TO 6 ARE ELIGIBLE FOR BOUNUS.
REGARDS
PARDEEP SHARMA

Dear sir,
kindly clarify the difference or comparison between rs 7000/- celing of BASIC DA and MINIMUM WAGES CEILING....
NANDHAGOPALAN.R

Hi Nandagopal
The new act says that for the purpose of computing bonus, you need to take 8.33% of annual salary (or 20% of annual salary)
The salary will the lower of actual salary or ₹7000 per month.
However, if the minimum wages is more than ₹7000 per month, then you take the ceiling of minimum wages instead of ₹7000
Hope it is clear

Dear Basu
For 1 to 3 point, bonus will be calculated on actual basic salary.
For 4 to 6 point, bonus will be calculated on Rs. 7000 or the minimum wages as fixed by government for that category of employement, whichever is higher. if minimum wages is 7600 then the bonus will be calculated on Rs. 7600 not on 7000.
Regards
Dinesh Kumar

Dear Nabarun,
Reply to your queries are:-
Case- 1 Bonus will be calculated on 4000 or the minimum wages if it is scheduled employment which ever is higher.
Case - 2 Bonus will be calculated on 5600 or the minimum wages if it is scheduled employment which ever is higher.
Case - 3 Bonus will be calculated on 6995 or the minimum wages if it is scheduled employment which ever is higher.
Case - 4 Bonus will be calculated on 7000 or the minimum wages if it is scheduled employment which ever is higher. Emp is covered under Bonus Act.
Case - 5 Bonus will be calculated on 7000 or the minimum wages if it is scheduled employment which ever is higher. Emp is covered under Bonus Act.
Case - 6 Bonus will be calculated on 7000 or the minimum wages if it is scheduled employment which ever is higher. Emp is covered under Bonus Act.
Trust the above will satisfy your query.
S K Bandyopadhyay
USD HR Solutions

+919831081531