CALCULATION OF BONUS : SECTION 12, ASECTION 10 AND 11

Dear Sir,

I am writing to inquire about how the bonus will be calculated in the present situation when a minimum of 8.33% is to be given.

For example, let's consider one person who is receiving:
1. Basic for 365 days at 9000 X 12 = 108000/-. The calculation would be as follows:
9000 X 12 = 108000/- X 8.33% = 8996.40
3500 X 12 = 42000/- X 8.33% = 3498.60

Could you please confirm if the above calculation is correct, and also advise on the liability to pay to the staff?

Thank you,
Rakesh Srivastava

If Basic+DA is less than or equal to 10,000, then the calculation will be made on 3,500. If Basic+DA is less than or equal to 3,500, the calculation will be made on the actual amount.

Regards,
Nilendra

As per the Bonus Act, the bonus calculation will be as follows: 3500 X number of months worked during the FY X 8.33% = 3498.60.

Regards,
Jony_M

Dear,

The minimum payable bonus is 8.33% or Rs. 100, whichever is higher, and the maximum bonus payable is 20%. The company has to decide what percentage bonus it wants to pay. It's not mandatory that a company will pay either 8.33% or 20% only.

Regards,
Nilendra

1. If concern is in profit but allocable surplus is negative or equal to bonus @8.33% on 3500X12 = 42000, then what is the liability of bonus.

2. In the above situation, if earlier year bonus is calculated on 3500 X 12 = 42000 instead of 2500 X 12 = 36000, was this a wrong calculation? Is there any change in the calculation with this mistake?

RAKESH SRIVASTAVA

In addition to the Srivastava's comment, if the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in place of the minimum bonus, be bound to pay to every employee in respect of that accounting year a bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty percent of such salary or wage.

Hi everybody,

A small clarification regarding the calculation of bonus: If an employee worked for 1.1 years, how is the bonus calculated?

Regards,
Naveen

Hi, everybody,

A small clarification regarding the calculation of bonus if an employee worked for 1.1 years and his basic is $3500. How is the bonus calculated?

Regards,
Naveen

Dear Rakesh Srivasthava,

8.33% is the percentage form of 1/12, i.e., 100/12 = 8.33. So the minimum bonus is equivalent to one month's salary for one year. Accordingly, the maximum bonus will be 2.4 times one month's salary.

The salary ceiling for bonus coverage is Rs. 10,000, but for bonus payment, the ceiling limit is Rs. 3500 w.e.f.

If the allocable surplus is sufficient for only the minimum bonus, payment is done accordingly.

Abbas P.S.

If a worker receives a daily wage of Rs 305.6, how is the bonus calculated?

Dear sir,

If the employee is present for 335 days, is he eligible for the full bonus of 365 days? Please suggest.

Dear Sir/Madam,

If the employee takes a greater number of leaves, we can provide a full bonus to him.

Thank you.