How Do You Calculate Statutory Bonus in a CTC Structure? Seeking Guidance on Compliance Norms

Understanding Statutory Bonus Calculation

Please share your knowledge about the statutory bonus, as I want to know how to calculate it according to compliance norms.

For example, please find the CTC structure of an XYZ employee. How much amount will come under "STA BONUS"? Also, please refer to the attached sheet for your reference.

Basic - 15000
HRA - 750
Con - 1600
Medi - 1250
Sta Bonus - ????????
Other - 500
Gross Salary = 19100

PF Employer - 1800
PF Admin - 75
EDLI - 75
ESIC - 907
Total Deduction - 2897

PF Employee - 1800
ESIC Employee - 334
PT - 200
Total Deduction - 2334

Net = 16766
CTC - 21957

Hello Everyone,

Please consider the Maharashtra state for bonus calculation. For the skilled category, the minimum wage is 9445/- (including BASIC + DA).

Please find the minimum wage rates for different categories:
Skilled - 9445/-
Semi-Skilled - 9045/-
Unskilled - 8645/-

Thank You

Dear Vikas, was the said employee eligible to receive the statutory bonus under the Payment of Bonus Act? If they earn less than Rs. 21,000 per month and have worked for a minimum of 30 days in the financial year, they qualify.

The minimum statutory bonus would be Rs. 7,000 or the minimum wages (Rs. 9,445), whichever is higher. Let's assume the minimum wages in your region are Rs. 9,445, in which case the minimum bonus would be Rs. 9,445. Bonus calculation will be based on actual attendance (pro rata). All authorized leaves, offs, and holidays are to be considered as present. Only unauthorized absences, for which wages have been deducted, will be counted as absences.

For the period from 1st April to 31st March, if the employee has perfect attendance, and if your company has declared the minimum bonus of 8.33%, the calculation would be as follows: Rs. 363.27 (per day minimum wage) x 312 (present days) = Rs. 113,978.6 @ 8.33% = Rs. 9,442.

I hope this explanation clarifies the matter.

Thank you,
Shailesh Parikh
[Phone Number Removed For Privacy-Reasons]
Vadodara

Mr. Shailesh Parekh has explained how to calculate the individual statutory bonus. The statutory bonus is determined first based on Schedule I or II (as applicable) of the Payment of Bonus Act to arrive at the available surplus and then the allocable surplus. The statutory bonus may vary between 8.33% to 20%. If there is any "set on" or "set off," that will also need to be considered to determine the percentage of bonus finally to be declared by any organization. The final bonus may be anything between 8.33% to 20%.

After determining the percentage of bonus for the organization, then calculate the individual amount.

Thanks & Regards,
S K Bandyopadhyay (Howrah, WB)

Please define the calculation of payable percentage as per Schedule II of the Bonus Act in simple layman's form.

What is to be added and deducted from the net profit of the firm to arrive at allocable surplus.

Hi,

Good morning!

One of our highly skilled employees is eligible for a bonus payment for the year 2018-19. His gross salary is Rs. 14,369, with a basic salary of Rs. 8,643. The minimum wage fixed by the H.P. Government is Rs. 9,885.

What will be the minimum and maximum payable bonus to the employee?

Minimum Bonus at 8.33% will be 9885/- and the maximum Bonus at 20% will be (9885 * 12) * 0.2 = 23,724/-.

S K Bandyopadhyay (WB, Howrah)

Email: skb@usdhrs.in