Bonus Payment If Employee Worked Only 41 Days

akhil2015
Dear Seniors,
one of the employee has worked only 41 days in financial year 2015-16 after working 41 inclusive weekly off he resigned. pls suggest me weather is eligible for 1 month bonus or 2 month or full 7000/-
Regard
Anil Jha
stephen_7
Please find the extract of the act. Follow the same.
Section 8 in The Payment of Bonus Act, 1965
8. Eligibility for bonus.—Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
Rajesh Kumar Dubey
Dear Anil
As per provision of Payment of Bonus Act, he is entitled for Bonus according to working days in particular FY but looking to his earning if < 21000 PM.
He will be paid bonus pro rata @ 7000PM for particular days only.
Thanks
mahesh3328
Dear Anil,
As per section 8 of Bonus Act if employee has work for 30 working days then can be eligible for bonus in that year. Here out of 41 days you can count number of working days and if it is 30 or more than that then that employee is eligible for bonus. And you can pay him bonus as per his earnings.
akhil2015
Dear All,
the employee salary is as follow...
16000 basic
2000 Conveyance allowances, total 18000/- PM however our state minimum wages is 7980/- as employee has worked only 41 days pls tell me how the bonus will be calculate in this situation
Apex Management
Please note if the basic is Rs.16000/- per month the bonus will be calculated as under:-
Suppose 1st full month - salary earned Rs.16000/-
Next month (41-30=11) - salary earned Rs.5867/- Total Rs.21867/-
Bonus = Earned wage x %age of bonus (Say 21867*8.33% i.e. minimum = Rs.1822/-)
(Percentage depends upon the allocable surplus for the year)
But please make sure that the person concerned must have worked for at least 30 days in the accounting year. The minimum wages of your State does not matter in this case. According to the notification where minimum wage in any State is less than Rs.7000/- per month, the wage for bonus purpose will be taken in to account at Rs.7000/- per month and in other cases Rs.7000/- or actual wage which is higher.
P K Sharma
saswatabanerjee
Sorry, the above working is wrong.
Bonus is to be paid on actual bonus subject to a ceiling of ₹7000 or minimum wages, whichever higher.
Since min wages is higher,,that will be taken into account.
Please compute his total basic for the entire period of his working with you, computed at min wages level, and give bonus on 8.33% of that amount.
However, if the allocable surplus is higher (effectively meaning you are highly profitable), you will need to pay @20% not 8.33%. This will then need to be paid to the employee at the time of disbursement of bonus next year. Mostly people don't bother with that actually.
akhil2015
sir..
i am bit confused weather bonus will be calculate on earned wages*8.33% or on our state minimum wages as it is higher then ceiling limit 7000
saswatabanerjee
It will be computed on state minimum wages * 8.33%
That is provided for in the new bonus act passed by Modi government
Apex Management
Please go through the clarification above. Bonus is calculated on earned wage only.
P K Sharma
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