Understanding Bonus Calculations for FY 2017-18: Are There Changes in the Minimum Bonus Act?

Dear All,

Please, can anyone let me know how to calculate the bonus for F.Y. 2017-18? Are there any changes in the Minimum Bonus Act?

In my company, we are giving 1 month's salary, i.e., 8.33%, as a bonus to all employees. Is this correct or not?

Regards,
Mittal Jain

You will be able to calculate the bonus only after the finalization of the books of accounts and once you have earned a profit. Hence, you will be able to calculate the bonus in or after April 2018. The total bonus amount will be determined by using Register A and B as specified in the act. Subject to the provisions of the law, the minimum quantum of the bonus is 8.33%; there is no minimum bonus specified in the act.

To continue, the bonus will have to be paid within 8 months of the close of the books of accounts, by December 2018.

Dear Mittal,

As per the Bonus Act, you need to pay a minimum of 8.33% or the minimum wages applicable to your state, whichever is higher.

Thank you.

Minimum % of Bonus: 8.33%
Maximum % of Bonus: 20%
Salary Definition: Minimum wages applicable to the employee or Rs. 7,000, whichever is higher.
Financial Year 2017-18 (April to March)
Payable on or before 30th November 2018.

Minimum wages or salary to the employees: which part of the salary do we consider, basic or gross?

In determining the minimum wages or salary for employees, it is important to clarify whether we are referring to the basic salary or the gross salary. The basic salary typically refers to the fixed amount agreed upon between the employer and employee, excluding any additional benefits or allowances. On the other hand, the gross salary includes all components such as basic salary, allowances, bonuses, and any other monetary benefits.

Understanding which part of the salary is being discussed is crucial for accurate calculations and compliance with labor laws. It is essential to clearly define the terms and components of the salary to ensure transparency and fairness in compensation practices.

Hi,

I am attaching a link that will guide you on your issues related to bonuses. https://www.stacowiki.in/en/acts/st-...bonus-act1965/ Hope this helps!

Dear Sir/Madam,

I received my bonus of Rs. 8080/- for the financial year 2017-18 from my company. From April 17 to May 17, my basic salary was Rs. 7775/- and conveyance was Rs. 1600/-. After that, from June 17 to March 18, my basic salary was Rs. 9275/- and conveyance remained at Rs. 1600/-.

Could anyone guide me on how the company calculates the bonus?

It might be calculated on the basis of minimum wages prevailing in your area or additionally paid due to ex-gratia!

Dear Chawlanaveen,

Please read the link below, where I have attached the Bonus Calculation sheet: https://www.citehr.com/587058-excel-...ml#post2368225. We need to consider Basic+DA for calculating the Bonus.

Hope this will serve your purpose.