Dear Friends,
I have some confusion about the calculation of bonus. As per the new amendment, the wages limit for eligibility for a bonus is Rs. 21,000, and the maximum limit for the calculation of the bonus is Rs. 7,000.
My query is if an employee's monthly salary is Rs. 14,000.00 and they worked in January 2017 for 6 days, earning a salary of Rs 3,230.00, on which amount do I have to calculate the bonus (Rs. 3,230 or Rs. 1,615 as per Rs. 7,000)?
Please advise.
Thanks.
From India, Pune
Acknowledge(3)
Amend(0)
4I have some confusion about the calculation of bonus. As per the new amendment, the wages limit for eligibility for a bonus is Rs. 21,000, and the maximum limit for the calculation of the bonus is Rs. 7,000.
My query is if an employee's monthly salary is Rs. 14,000.00 and they worked in January 2017 for 6 days, earning a salary of Rs 3,230.00, on which amount do I have to calculate the bonus (Rs. 3,230 or Rs. 1,615 as per Rs. 7,000)?
Please advise.
Thanks.
From India, Pune
Acknowledge(3)Amend(0)
As per PBA 1965, bonus is calculated as a % of the salary or wage earned by the employee during the accounting year. So it has to be Rs3230 for Jan’17.
From India, Mumbai
Acknowledge(1)
Amend(0)
From India, Mumbai
Acknowledge(1)Amend(0)
The earned salary must be taken into account for calculating Bonus . The wage ceiling limit is only 21k.
From Spain, Burgos
Acknowledge(1)Amend(0)
From Spain, Burgos
Acknowledge(1)Amend(0)
Dear Paraag, what is this "Calculation of Bonus on prorated salary of employee as per new amendment 2017"? Please apply your mind before posting such things. From your post, it will be construed that the Bonus Act has been amended in 2017, which is not correct.
Clarification on Bonus Act Amendment
Further, the bonus for FY 2016-17 should have been disbursed on or before 30/11/2017. Please stop posting hypothetical questions. Instead, go through the Bare Act and revert with your queries for knowledge updation. Please note that learning is a continuous process, and there are no shortcuts in learning. Please make use of the knowledge of forum members in the right manner.
From India, New Delhi
Acknowledge(1)Amend(0)
Clarification on Bonus Act Amendment
Further, the bonus for FY 2016-17 should have been disbursed on or before 30/11/2017. Please stop posting hypothetical questions. Instead, go through the Bare Act and revert with your queries for knowledge updation. Please note that learning is a continuous process, and there are no shortcuts in learning. Please make use of the knowledge of forum members in the right manner.
From India, New Delhi
Acknowledge(1)Amend(0)
Bonus is to be calculated on a prorate basis, meaning that regardless of the salary (below Rs 21,000.00), each month's bonus should be calculated based on either the minimum wages or Rs 7,000.00, whichever amount is higher. For instance, if an employee has worked for only 13 days in January, the salary used for bonus calculation for that month would be Rs 3,500.00 only.
From India, Kanpur
Acknowledge(1)Amend(0)
From India, Kanpur
Acknowledge(1)Amend(0)
Sir, I am curious as to whether or not a cooperative bank that has been operating with a significant cumulative loss for a considerable amount of time is required to give a bonus to its employees at an interest rate of 8.33%.
Requesting a prompt response in order to resolve a disagreement, thank you.
With regards,
Drift Boss
Acknowledge(0)Amend(0)
Requesting a prompt response in order to resolve a disagreement, thank you.
With regards,
Drift Boss
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Amendment to Payment of Bonus Act 2015.jpg
SALARY SHEET CALCULATION.xls
Maternity Benefit Amendment Act 2017_03.04.2017 .pdf