Bonus Calculation Query As Per Recent Amendment - PDF Download

Hello Sir, What Bonus Earnings has to be taken in case of the following case:
Actual Basic+DA of an employee (Sales Reprensentative) = Rs. 7150 (>Rs.7000)
MInimum Wages for that employee cadre = Rs. 8350
Please clarify.
Thanks
R. Venugopal

Pay bonus considering that his salary is Rs 8350 per month.
Madhu.T.K

Dear Venugopal,
Since the basic plus DA is exceed the ceiling limit i.e. 7000 also the concern employee is in the coverage of scheduled employment. Hence as per sec 12 of payment of bonus act. 1965 which one is higher weather ceiling limit or state minimum wages. In your case state minimum wages is Higher then ceiling limit therefore State minimum wages i.e. 8350 shall be Taken for Bonus Calculation?
Thanks & Regards
V SHAKYA
HR & LAbour Laws Advisor

Dear All,
If Minimum wages including basic+ Da is 8500, in this case as per bonus amendment , bonus is calculated on 7000 or minimum wages which ever is higher means 8500/-
bonus calculation Minimum wages 8500*8.33% = 805 or slab limit 7000*8.33%=583, this is for 8.33 but if company wants to pay bonus on 20% in that case also we have to calculate bonus on slab limit (7000) or minimum wages (8500) which ever is higher?
Regards
Shyam

If you strictly follow the Act, then you have to calculate it as 20% of 7000 or 20% of minimum wages whichever is high.
Madhu.T.K

Hi Sir,
My last company is denied to give me my statutory bonus they are saying that company is in loss. My basic salary was 15000 and i worked there 1 year 3 months also they are not giving me any increment in my salary. Please help me sir.

Bonus and increment are two different issues. When you have left the company you cannot demand any increment from them. Increment is purely based on your performance and it is given to motivate the employee to remain with the employer for a long period. Since you have left the employment, you cannot ask for that.
Regarding bonus, you can demand at least the statutory bonus. Send a demand letter to the company.
Madhu.T.K

Is this a query or examination of the members? Please keep your query short.

Can anyone please clarify, if somebody joins the organization on 16 March 2017, and he is continuing working with the company till date.
How do we treat this employee for calculating his bonus for the FY 2016-17?
Are we liable to pay him the bonus for 16 days for FY 2016-17.
Though he will be eligible for bonus for the FY 2017-18.
Please clarify. Thanks.

It is very clearly stated that in order to be eligible for bonus one should have worked at least for 30 days in the financial year. Since your employee has not worked for 30 days in 2016-17, he is not entitled to any bonus as per the Act.
Madhu T K