Bonus calculation sheet excel download - ready for use

Respected sir,

Please send the bonus calculation sheet.

Please find the bonus computation template for the year 2016-17.

Regards,
Amit

Dear Friend Amit,

Thank you for the file, but you have calculated the minimum amount as Rs 7000. It should be calculated between Rs 7000 or the minimum grade, whichever is higher. As the minimum grade is higher, please review. If I am mistaken, kindly correct me.

Thanks

If 8.33% of eligible salary exceeds Rs. 7,000 per year, then the statutory bonus is limited to Rs. 7,000 or Rs. 583 per month.

Please review the bonus applicability.

Dear Amit Aishwarys,

Your statement that Statutory Bonus limited to Rs7,000/- is not correct. Please read the act once again.

Bonus at the rate of 8.33% for wages up to Rs7,000/- will be Rs7,000. Bonus at the rate of 8.33% for wages up to Rs10,000 will be Rs10,000/-.

Dear Srinath Ji,

Have you ever thought about what the capping amount of the bonus is? If not, then please refer to the description given below:

For the payout of the bonus, the capping is at Rs 7000/-. Every employee should receive a minimum of 8.33% of wages capped at Rs 7,000/- even if there is a loss and a maximum of 20% of wages capped at Rs 7,000/- in an accounting year. Many companies follow the practice of paying bonuses on a monthly basis; some pay a minimum of 8.33% of Rs 7,000, i.e., Rs 583/-, or some 20% of Rs 7,000/-, i.e., Rs 1,400/- per month.

Capping of Rs 7000/- means that even if an employee falls under the bonus category (Basic salary is less than or equal to Rs 21,000), he will be paid a bonus on a maximum of Rs 7,000/-. Employers can calculate the bonus on the capping amount.

For example, if an employee's basic salary is Rs 12,000 (where we will consider only Rs 7,000 as a bonus salary) and he works for 12 months in a financial year, then the bonus amount he will receive in that year will be calculated as follows:
Bonus Calculation = (Basic Salary + DA) x Number Of Months Worked x 8.33%
= 7000 x 12 x 8.33% = Rs. 6997

I understand that as per The Bonus Amendment Act '2015 - An employee who is drawing a salary or wages between Rs 7000/- per month and Rs 21,000/- per month, the bonus payable to him is to be calculated on Rs 7000 or whichever is higher. However, it depends on the company policy. I am not saying that your statement is wrong, but my statement is also not wrong.

Please refer to the attachment.

Regards,
Amit

Dear All,

If you read the Bonus Act (Amended), there is a very clear rule:
Eligibility if Basic <= 21,000/-
The maximum limit of the bonus is Rs. 7,000/- or minimum wages, whichever is more.
Suppose the Basic + DA is Rs. 6,000/- per month, then the bonus will be Rs. 7,000/- Statutory.
If Basic + DA is Rs. 10,000/- per month, then the bonus will be equal to the minimum wages or Rs. 7,000/-, whichever is more.
If Basic + DA is more than Rs. 21,000/-, then there is no bonus eligibility.

Dear Mr. Amit,

Please note that your statement, "But it depends on Company policy," does not apply to statutory matters. Your company policy should be in conformity with statutory requirements, i.e., The Payment of Bonus Act, 1965. The calculation of bonus should be based on Rs 7,000/- or the applicable minimum wages, whichever is higher, for the financial year 2016-17.

You may check the applicable minimum wages for the FY 2016-17, where you will find that the minimum wage is more than Rs 7,000/-. I hope this clarification is sufficient. When discussing statutory matters, company policy should not be mixed up. If the company policy is less than the statutory requirement, the law will prevail over the policy.

Dear Mr. Mishra,

It would be really helpful if you could share the exact clause in the act where it is mentioned that an employee is eligible for bonus payment when his basic + dearness allowance is less than 21,000. I have understood the bonus act in a different way, which I am sharing below. If you can correct me, it would be really helpful.

According to me, the bonus eligibility is calculated on the basis of earnings other than a few allowances of the same category such as overtime allowance, incentives, etc. However, the payment of bonus is based on basic + dearness allowance only. For bonus calculation, only basic and dearness allowance would be required.

Please help me understand the same better by quoting the clause in the bonus act where it is mentioned that an employee whose basic + dearness allowance is less than 21K should be paid bonus as per the statutory norms.

Thanks in advance.

Syam

Statutory Bonus workings with Minimum wages Excel template

Hi,

I am working on creating a Statutory Bonus calculation sheet that integrates with the Minimum Wages data in an Excel template. The goal is to streamline the process and ensure accuracy in determining bonuses based on statutory requirements and minimum wage regulations.

The template will automatically calculate the bonus amount owed to employees based on their wages and the statutory guidelines in place. By linking the bonus calculations with minimum wage data, we can avoid errors and ensure compliance with labor laws.

I will be happy to share the finalized Excel template with you once it is complete. Let me know if you have any specific requirements or inputs that you would like to include in the design.

Thank you.

2018-2019 Bonus Calculations Examples

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Hi, thank you for providing the input. I have corrected the spelling and formatting for the text you shared:

2018-2019 Bonus Calculations Examples

I hope this helps! Let me know if you need further assistance.

Dear Sir,

Please provide the monthly payout bonus register format in Excel.

Regards,

Rakesh Kumar

1
[10. Payment of minimum bonus.—Subject to the other provisions of this Act,
every employer shall be bound to pay to every employee in respect of the
accounting year commencing on any day in the year 1979 and in respect of
every subsequent accounting year, a minimum bonus which shall be 8.33 per
cent of the salary or wage earned by the employee during the accounting year or
one hundred rupees, whichever is higher, whether or not the employer has any
allocable surplus in the accounting year:
Provided that where an employee has not completed fifteen years of age at
the beginning of the accounting year, the provisions of this section shall have
effecting relation to such employee as if for the words “one hundred rupees”, the
words “sixty rupees” were substituted.]
2
[11. Payment of maximum bonus.—(1) Where in respect of any accounting
year referred to in section 10, the allocable surplus exceeds the amount of
minimum bonus payable to the employees under that section, the employer shall,
in lieu of such minimum bonus, be bound to pay to every employee in respect of
that accounting; year 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 per cent, of such salary or wage.

Calculate Bonus as per Section 12 of the Payment of Bonus Act 1965

Step 1: Determine which amount is higher between the Minimum Wages and 7000; consider the higher one.

Step 2: Identify which amount is lower between the figure from step 1 and Basic+DA; use this amount and multiply by 8.33 or the applicable rate.

*Note - Case 1: If Minimum wages are lower than 7000, then 7000 will be considered. Case 2: If Minimum wages are higher than Basic+DA but below 7000, then select the higher amount.

Example 1 - If Basic+DA is 12000 and Minimum wages are 10000, calculate as follows:

Step 1 - 10000 is higher than 7000.

Step 2 - 10000 is lower than Basic+DA, which is 12000. Bonus wages are 10000, and the Bonus will be 10000 x 8.33 = 833.

If Basic+DA is 6800, Ceiling 7000, and Minimum wages 6500:

Step 1: Determine the higher amount between the Minimum wages and ceiling, which is 7000.

Step 2: Identify the lower amount between the figure from step 1 and Basic+DA, which is 6800. Now, the bonus wages amount to 6800 Rs.