Bonus Caluculation 20000*12=240000*8.33%=19992 - is the calculation correct?

Hi, Am working as an HR in a private limited company

In our organization, some of the employees Earned Basic+DA is 20000/-pm
Bonus Caluculation 20000*12=240000*8.33%=19992
Above calculation is correct?

Request for your advice

Regards,
Asha

as per my knowledge Bonus calculation is Basic+DA/No days in Month*No of payable days in a moth *8.33% ( Bonus Calculation Month Wise )

Example :- April'22 payable days - 20
May '22 payable days - 26
June'22 Payable Days - 10

Dear Ashavasanth,

As per the amended section 12 of the PB Act,1965, when the salary or wage of the employee exceeds Rs.7000-00 per month, the bonus payable u/s 10 or 11 as the case may be, shall be calculated as if the salary or wage were Rs.7000/= or the minimum wages fixed whichever is higher.

Therefore, in the given case, the minimum bonus payable would be Rs.7000 X 12 X 8.33 = Rs.6997-00, if no minimum wages fixed or the minimum wage fixed is less than Rs.7000/- as the case be.
If on the contrary, the minimum wage fixed is more than Rs.7000/=, actual minimum wages should be taken into account for calculation.

Sitting 2022-2023 all organizations will pay bonus for 2021-2022 financial year. As bonus is a deferred wages, therefore it is required to check the Basic and DA during the financial year 2021-2022 for the employees. If the said amount is 21,000/- per month or below, the concerned employee will be eligible for Bonus.

Now come to calculation of bonus for individuals and what Mr. Umakanthan M has been explained above, I agree with that in totality.

S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
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Dear Asha

The working is correct as such (other than the fact that you are paying it on higher wages than mandatorily required - ref to posts above on the ceiling)

However you are assuming that bonus is payable only at the minimum rate of 8.33%
You need to make the allocable surplus register, available surplus register, and from that compute the rate of bonus It can be up to 20% of salary

Hello, Ashavasanth.

Divide the bonusable salary by 12 to determine the correct amount of bonus. (100/12=8.3333%)
As a result of this, Rs.2,40,000/12=Rs.20,000/-
As a result, rather than multiplying by 8.33%, please use divisor 12 from now on.

Regards,

Suresh