How Do Bonus Act 2016 Amendments Affect Bonus Calculations for AC Installers in West Bengal?

Dear Seniors, My company profile is a central AC installer company, and I am Subhajit Bhowmick, Payroll Executive. Kindly inform me about the new amendments to the Bonus Act 2016 according to the West Government Labour Department.

Bonus Calculation Criteria

1. I would like to know if the bonus is calculated based on total wages, gross salary, or if it depends on Basic + DA.

2. If any employee exceeds a gross/basic amount of Rs. 21,000 per month, are they eligible for the bonus as per the Act?

Bonus Calculation Examples

How to calculate the actual bonus based on:

- Total Wages: Rs. 8,500 per month, Rs. 9,100 per month, Rs. 10,500 per month.
- Basic Wages: Rs. 4,250 per month, Rs. 4,550 per month, Rs. 5,250 per month.
- Total Salary: Rs. 14,000 per month, Rs. 20,000 per month, Rs. 30,000 per month, Rs. 45,000 per month, Rs. 50,000 per month.
- Basic Salary: Rs. 7,000 per month, Rs. 10,000 per month, Rs. 15,000 per month, Rs. 22,500 per month, Rs. 25,000 per month.

Please note that we do not provide DA Allowance to employees. I kindly request all of you to reply to me urgently. I hope you understand my concerns.

Regards, Subhajit Bhowmick

The Payment of Bonus Act 2016 mandates that the bonus calculation is based on the employee's Basic + DA. Employees exceeding a Gross/Basic amount of Rs. 21,000 per month are eligible for the bonus as per the Act. To calculate the bonus, follow these steps:

1. Calculate the bonus as 8.33% of the total wages earned during the accounting year.
2. For employees with different salary structures, compute the bonus based on the Basic wages provided.
3. For Total Salary and Basic Salary variations, ensure the bonus is calculated on the Basic component without considering the DA Allowance.
4. Use the respective salary figures provided to determine the bonus amount accurately for each scenario.
5. As per the Payment of Bonus Act 2016, ensure timely and accurate bonus payments to eligible employees to comply with the legal requirements.