How to Calculate Bonus for an Employee with Varied Leave and Wage Periods?

Dear All,

In FY 2015-16, one of our employees worked for 356 days out of a total of 365, taking 9 days of leave. The distribution of the leaves was 2 in May, 3 in July, 1 in November, 2 in January, and 1 in March. However, our state minimum wages for the period from April to September were 7134/-, and from October to March 2016, they were 7460/-. The employee's basic salary is 8000 per month. Please let me know how much bonus will be payable to this employee.

Thanks,
Kankit Kumar

Dear Kankit Kumar,

He will receive Rs. 7803/- as a bonus for the FY 2015-16.

Dear Joshi Sir,

Can you please break down the calculation to show how he is entitled to a bonus of 7803/-?

Dear Joshi Sir,

Weather bonus will be calculated on 7000 or on the state minimum wages or on 8000/-. As per Section 12, the bonus will be calculated either on the 7000 ceiling limit or on the minimum wages for scheduled employees, whichever is higher. Hence, the bonus should be calculated on the state minimum wages, which is higher than 7000.

Your views, please.

Dear Sandeep Ji,

Please let us be more clear on the concept of bonus calculation ceiling, i.e., Rs. 7000.

Mr. Sandi Joshi is correct. The salary has to be worked out proportionately, and accordingly, the bonus will also be reduced based on working days.

Bonus Calculation Guidance for 2015-2016

Can you guide us on bonus calculation for the year 2015-2016? As per the new amendment, the bonus ceiling is Rs. 7000/-.

Our questions are:

a) If a person is getting Rs. 8500 per month, how much amount should be considered for the bonus calculation?

b) If a person is getting Rs. 6500 per month, which amount should be considered for the purpose of bonus calculation?

The minimum wages in our zone for the period are as follows:
- Jan 2015 to June 2015: Rs. 7988/- per month
- July 2015 to Dec 2015: Rs. 8128/- per month
- Jan 2016 to June 2016: Rs. 8464/- per month

Another question we have is, if a person is irregular in attendance, i.e., absent for 2 or 3 days every month, how should we calculate the bonus?

Thank you.

Dear All,

As I mentioned, the bonus amount is dependent on payable days. For further clarification, please do not hesitate to contact me via phone.

Thank you.