Confused About Bonus Calculation: Should We Use 365 or 306 Working Days?

Please solve my problem related to the number of working days in a year. As Form C of the Bonus Act has a column for the number of working days in a year, what entry should be made in this column, whether 365 or 306 (after deducting Sundays and national and public festival holidays)? My company calculates salary by dividing the salary by 30 or 31 (as the case may be) and multiplying it by the number of working days of the employee.

Additionally, my company remains closed on Sundays and all national and festival holidays. So, the confusion lies in how to calculate the bonus of employees: the number of actual days worked by the employee/365*84000 or the number of actual days worked by the employee/306*84000, followed by calculating 8.33% of the resultant amount. Please share your views.

Understanding Working Days for Bonus Calculation

The number of working days should only refer to the days for which wages were paid. For employees who are paid monthly, this will be 365 days. For daily-rated employees, it depends on the actual physical days worked.

Clarification on Column 6

Column 6 (number of days worked in the year) should reflect the number of days for which wages have been paid to each employee. You can include days such as weekly offs, holidays, and paid leaves here because the column is meant to establish that the worker has worked for at least 30 days, including paid weekly offs and holidays.

Consistency in Reporting

For an employee who has not taken any leave without pay, the number of days worked will be 365. Therefore, at the top, after the name of the establishment, for "number of working days in a year," you cannot write 306 (i.e., days excluding holidays/weekly off days). It should be 365 to ensure column 6 matches.

Practical Considerations

Normally, this register is not maintained by many organizations. When payments, whether salary or bonus, are made through the bank, this register becomes insignificant. It is practically impossible to get each employee's signature in the register. However, you should maintain a bonus calculation sheet reflecting the details mentioned in Form C. That would be sufficient.