Bonus Calculation Process
Bonus calculation starts with the available surplus from the audited balance sheet/PL account. It is done by the accounts department. Then there is allocable surplus, which is a certain percentage of the available surplus. For organizations already paying bonuses, set on & set off will be considered to arrive at the final percentage of the bonus.
For employees, the calculation will be based on ₹7000 or minimum wages, whichever is higher, and the actual number of days present without LWP, subject to a minimum of 30 days present with pay in the year.
Please refer to the Bonus Act; in the schedule, you will find an example of set on & set off and other relevant information.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions