To calculate your Diwali bonus after completing 13 months in an organization in Mumbai, India, you need to consider the Payment of Bonus Act, 1965. According to this Act, the bonus amount is calculated based on the employee's salary or wage.
Here's a step-by-step guide to calculating your Diwali bonus:
1. Determine your bonus percentage: The Payment of Bonus Act stipulates a minimum bonus of 8.33% of the salary earned during the accounting year. The maximum bonus is capped at 20%.
2. Calculate your bonus amount:
- Minimum bonus: 8.33% of your total salary for the accounting year.
- Maximum bonus: 20% of your total salary for the accounting year.
3. Consider the salary ceiling: As of now, the salary ceiling for bonus calculation is Rs. 21,000 per month or the minimum wage for the scheduled employment, whichever is higher.
4. In your case, with a monthly income of 29k, you need to check if the bonus percentage is specified in your employment contract or company policy. If not, the minimum of 8.33% or the maximum of 20% would apply.
5. Calculate your Diwali bonus based on the percentage determined in step 4.
Remember to verify the specific bonus norms and policies of your organization to ensure accurate calculations. It's advisable to consult with your HR department for precise details regarding your Diwali bonus eligibility. 🎉