Hi
I m working in a where no proper HR dept i m the only HR person and i m also fresher and my company giving bonus first time to their emplyees so that i have some confusion regarding the calculation of Bonus can anyboay help me to solve my problems:
I hereby elaborate the difficulties; I have faced in this respect:
1. Is the earned salary (basic + DA) per month or total basic salary + DA per month will compare with Rs.3500/- for taking as a base for calculate earned salary per month for the bonus. (For example: If a person’s basic salary + DA in a month is Rs 5000/- and his earned salary for that month is Rs.3400/-. Then for that month which amount - i.e. Rs. 5000/-, Rs. 3400/-or Rs 3500/- we have to consider as a base salary to calculate earned salary).
2. If the basic salary + DA will compare with 3500/- to consider as a base salary for the calculation of earned salary, can the calculated earned salary per month be more than 3500/-. ( for example : If a Person’s basic salary + DA in a month is Rs 3450/-and he worked for 27 days ( due to also worked on his allowed w/off) in month instead of his 26 working days ( after deducting weekly offs) in that month. In this case his earned salary for that month is 3450/26*27= 3582/-. Than for that month which amount we have to consider for the calculation of bonus - i.e. Rs 3582/- or Rs 3500/-).
3. In bonus calculation which days we consider as total working days either total days of the month (for example for April - 30 days, for May – 31 days) or total days of the month after deduct allowed weekly off (for example for April - 30 days less 4 weekly off being 4 Sundays, for May – 31 days less 5 weekly off, being 5 Sundays) or days for which he worked including Leaves with wages.
4. In respect of above 3rd point total working days for staff members and workers will be same or not.
5. As it has been comes to my notice that there is requirement to maintain A, B, C registers for bonus calculation. Is there any register named ‘D’, if yes what is the format & filing procedure for same. Except bonus i have one more query regarding Leave encashment That Leave encashment is done on basic Salary or Gross Salary(Basic+Allowances+PF)
From India, Mumbai
Acknowledge(0)
Amend(0)
4I m working in a where no proper HR dept i m the only HR person and i m also fresher and my company giving bonus first time to their emplyees so that i have some confusion regarding the calculation of Bonus can anyboay help me to solve my problems:
I hereby elaborate the difficulties; I have faced in this respect:
1. Is the earned salary (basic + DA) per month or total basic salary + DA per month will compare with Rs.3500/- for taking as a base for calculate earned salary per month for the bonus. (For example: If a person’s basic salary + DA in a month is Rs 5000/- and his earned salary for that month is Rs.3400/-. Then for that month which amount - i.e. Rs. 5000/-, Rs. 3400/-or Rs 3500/- we have to consider as a base salary to calculate earned salary).
2. If the basic salary + DA will compare with 3500/- to consider as a base salary for the calculation of earned salary, can the calculated earned salary per month be more than 3500/-. ( for example : If a Person’s basic salary + DA in a month is Rs 3450/-and he worked for 27 days ( due to also worked on his allowed w/off) in month instead of his 26 working days ( after deducting weekly offs) in that month. In this case his earned salary for that month is 3450/26*27= 3582/-. Than for that month which amount we have to consider for the calculation of bonus - i.e. Rs 3582/- or Rs 3500/-).
3. In bonus calculation which days we consider as total working days either total days of the month (for example for April - 30 days, for May – 31 days) or total days of the month after deduct allowed weekly off (for example for April - 30 days less 4 weekly off being 4 Sundays, for May – 31 days less 5 weekly off, being 5 Sundays) or days for which he worked including Leaves with wages.
4. In respect of above 3rd point total working days for staff members and workers will be same or not.
5. As it has been comes to my notice that there is requirement to maintain A, B, C registers for bonus calculation. Is there any register named ‘D’, if yes what is the format & filing procedure for same. Except bonus i have one more query regarding Leave encashment That Leave encashment is done on basic Salary or Gross Salary(Basic+Allowances+PF)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Ishita,
As per the Minimum Bonus Act, the amount to be paid to an employee is 8.33% of the total salary earned during one year (Apr-Mar) of his service. For example, Bonus = Total amount of salary earned in the service of one year * 8.33%.
Please find attached more details that I have obtained from the web.
As per the Maximum Bonus Act, Bonus = Total amount of salary earned in the service of one year * 20% (maximum).
From India, Nizamabad
Acknowledge(0)Amend(0)
As per the Minimum Bonus Act, the amount to be paid to an employee is 8.33% of the total salary earned during one year (Apr-Mar) of his service. For example, Bonus = Total amount of salary earned in the service of one year * 8.33%.
Please find attached more details that I have obtained from the web.
As per the Maximum Bonus Act, Bonus = Total amount of salary earned in the service of one year * 20% (maximum).
From India, Nizamabad
Acknowledge(0)Amend(0)
Hi Ishita,
Regarding your question, the answer to your Question No. 1 is that the bonus is calculated on earning a salary of Rs 3400. For Question No. 2, the bonus is calculated based on Rs 3500. The annual working days are calculated as 360/30. Question No. 4 remains the same. Leave encashment is based on the basic salary. I do not have any information about the register. For more information, please call 09888280149.
Best regards,
Rajvir Singh
From India, Chandigarh
Acknowledge(0)Amend(0)
Regarding your question, the answer to your Question No. 1 is that the bonus is calculated on earning a salary of Rs 3400. For Question No. 2, the bonus is calculated based on Rs 3500. The annual working days are calculated as 360/30. Question No. 4 remains the same. Leave encashment is based on the basic salary. I do not have any information about the register. For more information, please call 09888280149.
Best regards,
Rajvir Singh
From India, Chandigarh
Acknowledge(0)Amend(0)
Too Confuse As nobody knows clearly that If Employye has not work for complete 1 year then how his Bonus to be calculated?
From India, Surat
Acknowledge(0)Amend(0)
From India, Surat
Acknowledge(0)Amend(0)
If you are able to ask the questions in a better, understandable way, you can get the best inputs. Before you ask, please be clear about what you exactly want. Asking questions is really difficult. Get some assistance and repost your questions.
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Dear Ishita,
Please search CiteHR for previous threads/discussions on bonuses. I am sure most of your problems will be solved after studying them. In case you still have some specific queries, please revert back. Be cool and patient. The issue is not a big deal, which would be incomprehensible for a dedicated, sharp individual like you.
Warm regards.
From India, Delhi
Acknowledge(0)Amend(0)
Please search CiteHR for previous threads/discussions on bonuses. I am sure most of your problems will be solved after studying them. In case you still have some specific queries, please revert back. Be cool and patient. The issue is not a big deal, which would be incomprehensible for a dedicated, sharp individual like you.
Warm regards.
From India, Delhi
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x