I am a little bit confused about calculating the bonus as follows: My worker has a basic salary earning as below:
April - 5800
May - 5800
June - 5800
July - 4000
August - 5500
Sep - 5800
Oct - 3200
Nov - 2250
Dec - 5800
Jan - 5800
Feb - 5800
Mar - 5800
Total basic earned during the year = $61,350.00
Calculating the Bonus Sheet
April - 3500
May - 3500
June - 3500
July - 3500
August - 3500
Sep - 3500
Oct - 3200
Nov - 2250
Dec - 3500
Jan - 3500
Feb - 3500
Mar - 3500
Now, the total basic as per the bonus act is = $40,450
Now the bonus is calculated as 40450 x 8.33% = $3,370.00
Actually, as per the bonus act, I have to replace each month's basic with 3500 if the basic is more than 3500.
I showed it to my legal consultant, and he said it is okay. But I want to be sure. Can you please suggest us?
From India, Rajkot
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10April - 5800
May - 5800
June - 5800
July - 4000
August - 5500
Sep - 5800
Oct - 3200
Nov - 2250
Dec - 5800
Jan - 5800
Feb - 5800
Mar - 5800
Total basic earned during the year = $61,350.00
Calculating the Bonus Sheet
April - 3500
May - 3500
June - 3500
July - 3500
August - 3500
Sep - 3500
Oct - 3200
Nov - 2250
Dec - 3500
Jan - 3500
Feb - 3500
Mar - 3500
Now, the total basic as per the bonus act is = $40,450
Now the bonus is calculated as 40450 x 8.33% = $3,370.00
Actually, as per the bonus act, I have to replace each month's basic with 3500 if the basic is more than 3500.
I showed it to my legal consultant, and he said it is okay. But I want to be sure. Can you please suggest us?
From India, Rajkot
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Dear Mr Pawan Your calculation is correct. Regards DK Srivastava 8400156666
From India, Pune
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From India, Pune
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Discrepancy in Basic Salary Calculation
Upon reviewing the calculations provided, it was observed that in a few months, the basic salary is less than Rs. 5800. I believe this discrepancy may be due to the number of days in those months not being consistently 30 or 31. In such cases, the Rs. 3500 (bonus salary) should be calculated as bonus salary divided by 30 or 31 days multiplied by the number of paid days.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Upon reviewing the calculations provided, it was observed that in a few months, the basic salary is less than Rs. 5800. I believe this discrepancy may be due to the number of days in those months not being consistently 30 or 31. In such cases, the Rs. 3500 (bonus salary) should be calculated as bonus salary divided by 30 or 31 days multiplied by the number of paid days.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Mr. Sumit has also made a correct suggestion, but I would recommend that you follow the calculations prepared by your organization. However, it can be very difficult to justify during audits.
Regards,
Janardan
From India, Mumbai
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Regards,
Janardan
From India, Mumbai
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as per salary structure, if full present then basic earning is 5800.00 is days is less in some month, basic salary is less accordingly. I think, My calculation is correct.
From India, Rajkot
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From India, Rajkot
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You have to calculate the bonus on 3500. If the number of present days in a month is full (i.e., 30/31), then you should take the basic as 3500. Otherwise, you have to calculate the basic as:
\[ \frac{3500}{\text{number of days in the month}} \times \text{number of present days} = \text{basic wages for bonus} \]
After calculating the basic for 12 months, you should take 8.33% of the sum of the total basic.
Regards,
Jai
From India
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\[ \frac{3500}{\text{number of days in the month}} \times \text{number of present days} = \text{basic wages for bonus} \]
After calculating the basic for 12 months, you should take 8.33% of the sum of the total basic.
Regards,
Jai
From India
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Dear seniors , Please tell me , IS 3500 is Fixed amount of bonus ?
From India
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From India
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The computation suggested by Jai is correct. Rs. 3500/- is the wage ceiling for payment of a bonus if the employee works for the whole month.
The reason why the calculation indicated by Jai is correct is that if you start paying Rs. 3500/- for employees (above the wage ceiling of Rs. 3500/-) who have worked without LOP and with LOP, then those who are working for the whole month will be disgruntled because the person who was on LOP will also be getting the same amount.
In case you need any clarification, please feel free to ask.
Regards,
M.V. Kannan
From India, Madras
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The reason why the calculation indicated by Jai is correct is that if you start paying Rs. 3500/- for employees (above the wage ceiling of Rs. 3500/-) who have worked without LOP and with LOP, then those who are working for the whole month will be disgruntled because the person who was on LOP will also be getting the same amount.
In case you need any clarification, please feel free to ask.
Regards,
M.V. Kannan
From India, Madras
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