Members,
Please do the bonus calculation for the following terms because I am totally confused in this respect. Basic 4500 Basic 9000 Basic 10000 Basic 12000. What is the exact execution of: 8.33% (min) and 20% (max) or "wages earned during the relevant accounting year" (what is the meaning of this black bold line)? I will be very thankful to all of you to describe this with an appropriate example.
*(What is the limit for entitlement towards Bonus)*
Regards
From India, New Delhi
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16Please do the bonus calculation for the following terms because I am totally confused in this respect. Basic 4500 Basic 9000 Basic 10000 Basic 12000. What is the exact execution of: 8.33% (min) and 20% (max) or "wages earned during the relevant accounting year" (what is the meaning of this black bold line)? I will be very thankful to all of you to describe this with an appropriate example.
*(What is the limit for entitlement towards Bonus)*
Regards
From India, New Delhi
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Dear Pulsar,
As per the latest amendment in the Bonus Act, the eligibility for the Bonus is as follows:
It is applicable to those who are drawing wages less than Rs. 10,000.00 per month. The minimum limit for the Bonus is 8.33%, and the maximum is 20%.
Minimum Bonus at 8.33% for employees drawing wages more than Rs. 3,500.00 and less than Rs. 10,000.00 will be Rs. 3,500.00 as per the Act. For employees drawing wages less than Rs. 3,500.00 per month, the bonus will be paid based on actuals.
Hope this will clear your query.
From India, Delhi
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As per the latest amendment in the Bonus Act, the eligibility for the Bonus is as follows:
It is applicable to those who are drawing wages less than Rs. 10,000.00 per month. The minimum limit for the Bonus is 8.33%, and the maximum is 20%.
Minimum Bonus at 8.33% for employees drawing wages more than Rs. 3,500.00 and less than Rs. 10,000.00 will be Rs. 3,500.00 as per the Act. For employees drawing wages less than Rs. 3,500.00 per month, the bonus will be paid based on actuals.
Hope this will clear your query.
From India, Delhi
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Dear Pulsar 180,
Whatever Mr. Rajeev has conveyed is the right answer to your query. Let me explain it a little more. If a person is drawing a basic salary of 4500, a bonus at 8.33% would be Rs. 4500, out of which you are liable to pay him 3500 as a bonus, and the rest can be paid as an ex-gratia. For a bonus at 20%, Rs. 10800 out of which you are liable to pay 8400 as a bonus and the rest in ex-gratia. The same would be the case with 9000 and 10000. In the case of a person drawing a basic salary of Rs. 12000, he is out of the preview of eligibility. All the amount you wish to pay, whether it is 8.33% or 20%, will be paid as ex-gratia. Hope this answers your query. Seniors, correct me if wrong.
Regards,
PR Verma
From India, Delhi
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Whatever Mr. Rajeev has conveyed is the right answer to your query. Let me explain it a little more. If a person is drawing a basic salary of 4500, a bonus at 8.33% would be Rs. 4500, out of which you are liable to pay him 3500 as a bonus, and the rest can be paid as an ex-gratia. For a bonus at 20%, Rs. 10800 out of which you are liable to pay 8400 as a bonus and the rest in ex-gratia. The same would be the case with 9000 and 10000. In the case of a person drawing a basic salary of Rs. 12000, he is out of the preview of eligibility. All the amount you wish to pay, whether it is 8.33% or 20%, will be paid as ex-gratia. Hope this answers your query. Seniors, correct me if wrong.
Regards,
PR Verma
From India, Delhi
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Mr. P.R. Verma,
As you said, a bonus of 8.33% would amount to Rs. 4500, out of which you are liable to pay him Rs. 3500 as a bonus, and the rest can be paid as ex-gratia. Does this mean the remaining amount that the candidate will receive is only Rs. 3500?
Will the rest of the ex-gratia be taken by the employee, or will it move back into the ex-gratia fund?
From India, Vadodara
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As you said, a bonus of 8.33% would amount to Rs. 4500, out of which you are liable to pay him Rs. 3500 as a bonus, and the rest can be paid as ex-gratia. Does this mean the remaining amount that the candidate will receive is only Rs. 3500?
Will the rest of the ex-gratia be taken by the employee, or will it move back into the ex-gratia fund?
From India, Vadodara
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Dear Seniors, Please correct me if I am wrong. If an employee is receiving only Basic - Rs. 7,667/- per month, the annual amount will be Rs. 92,004/-.
Bonus Calculation
Bonus Calculation is at 8.33%. So the calculation per month will be as follows:
- Minimum Wages - 3500 @ 8.33% = 291.55/-
- Ex gratia - 4167 @ 8.33% = 347.11/-
Thank you for your attention to this matter.
From India
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Bonus Calculation
Bonus Calculation is at 8.33%. So the calculation per month will be as follows:
- Minimum Wages - 3500 @ 8.33% = 291.55/-
- Ex gratia - 4167 @ 8.33% = 347.11/-
Thank you for your attention to this matter.
From India
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Dear Anonymous, As per my point of view....ex-gratia is given to those employees whose basic+da is more than 10,000..... Pls make me correct seniors if i m wrong.... Regards, Khushi
From India, Jamshedpur
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From India, Jamshedpur
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Employer is paying a bonus of 8.33% of basic, and the remaining ex gratia is [20% of total gross - 8.33% basic]. This means the bonus plus ex gratia payment equals 20% of the total gross salary.
If an employee has a basic salary of 10,000 and a gross salary of 20,000, they will receive a monthly bonus of 8.33% of basic, which amounts to 833 as a bonus. The total of ex gratia and bonus would be 20% of the gross salary. The employee will receive ex gratia, which is 20% of the gross salary minus 8.33% of the basic salary, i.e., [20% * 20,000] - [8.33% * 10,000], which is 4000 - 833, resulting in 3167 as ex gratia.
The employer is paying 20% of the total gross salary as a bonus and ex-gratia.
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If an employee has a basic salary of 10,000 and a gross salary of 20,000, they will receive a monthly bonus of 8.33% of basic, which amounts to 833 as a bonus. The total of ex gratia and bonus would be 20% of the gross salary. The employee will receive ex gratia, which is 20% of the gross salary minus 8.33% of the basic salary, i.e., [20% * 20,000] - [8.33% * 10,000], which is 4000 - 833, resulting in 3167 as ex gratia.
The employer is paying 20% of the total gross salary as a bonus and ex-gratia.
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