Dear Friends,
Can anybody tell me how to calculate the bonus if the ceiling is Rs. 3500 and the employee is present for 24 days instead of 26 days?
The calculation of the bonus is to be treated as follows:
3500 / 26 = 134.61
If the employee is absent but his wages are more than Rs. 3500, in that case, how to calculate the bonus?
134.61 X 24 = 3230
Then 3230 X 8.33% = 269
Is this the correct calculation, or should the wages be considered for 24 days at Rs. 3500?
Kindly reply as it is urgent.
Thanks in advance.
From India, Mumbai
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2Can anybody tell me how to calculate the bonus if the ceiling is Rs. 3500 and the employee is present for 24 days instead of 26 days?
The calculation of the bonus is to be treated as follows:
3500 / 26 = 134.61
If the employee is absent but his wages are more than Rs. 3500, in that case, how to calculate the bonus?
134.61 X 24 = 3230
Then 3230 X 8.33% = 269
Is this the correct calculation, or should the wages be considered for 24 days at Rs. 3500?
Kindly reply as it is urgent.
Thanks in advance.
From India, Mumbai
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Dear You are thinking in right direction. But employee must be entitled for such as per eligibility.
From India
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From India
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Dear Vilas Jadav,
The bonus will be calculated based on a monthly ceiling salary of Rs. 3500, i.e., if he is entitled to the minimum bonus for full attendance, the bonus amount is Rs. 3500. However, to receive the bonus on a pro-rata basis, he should have at least 30 days of attendance in a financial year. Therefore, there is a question regarding the bonus for only 24 or 26 days.
Abbas.P.S
From India, Bangalore
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The bonus will be calculated based on a monthly ceiling salary of Rs. 3500, i.e., if he is entitled to the minimum bonus for full attendance, the bonus amount is Rs. 3500. However, to receive the bonus on a pro-rata basis, he should have at least 30 days of attendance in a financial year. Therefore, there is a question regarding the bonus for only 24 or 26 days.
Abbas.P.S
From India, Bangalore
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Dear friends,
Please let me know about the bonus calculation. Is the calculation based on the accounting year or on an annual basis? If it is based on the accounting year, what is the percentage used in the calculation? Also, who fixes the wages, the Central Government or the state government?
With regards,
Aparna Nanda
From India, Hyderabad
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Please let me know about the bonus calculation. Is the calculation based on the accounting year or on an annual basis? If it is based on the accounting year, what is the percentage used in the calculation? Also, who fixes the wages, the Central Government or the state government?
With regards,
Aparna Nanda
From India, Hyderabad
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1. Bonus calculation is based on the accounting year.
2. Bonus calculation is based on salary, but the percentage is based on Allocable surplus.
3. Wages are variable for various bodies, which will be arrived at in compliance with the pay commission reports or in consultation with the Employees' Unions.
Abbas.P.S
From India, Bangalore
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2. Bonus calculation is based on salary, but the percentage is based on Allocable surplus.
3. Wages are variable for various bodies, which will be arrived at in compliance with the pay commission reports or in consultation with the Employees' Unions.
Abbas.P.S
From India, Bangalore
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Dear Mr. Abbas,
If the total basic salary or wages exceed Rs. 3500/-, then create the formula (3500/No of working days in the month (it may be 24/25/26/27)) * No of days present by the employee/workmen * Bonus %age. This is the correct way. However, some organizations follow a different approach. If the wages exceed Rs. 3500/-, regardless of whether a workman is present for 13 days or 27 days, they are calculating it as 3500. If it is less, they mention the actual amount. This is their own interpretation.
With warm regards,
S. Bhaskar
9099024667
From India, Kumbakonam
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If the total basic salary or wages exceed Rs. 3500/-, then create the formula (3500/No of working days in the month (it may be 24/25/26/27)) * No of days present by the employee/workmen * Bonus %age. This is the correct way. However, some organizations follow a different approach. If the wages exceed Rs. 3500/-, regardless of whether a workman is present for 13 days or 27 days, they are calculating it as 3500. If it is less, they mention the actual amount. This is their own interpretation.
With warm regards,
S. Bhaskar
9099024667
From India, Kumbakonam
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Dear Bhaskar,
Replace the number of working days with the number of total days in a calendar month and the number of days present by the attendance (including holidays and eligible leave, but LWOP will be excluded). Then your formula will be correct for one month.
That is, "3500/No of working days in the month (it may be 24/25/26/27)) * No of days present by the employee/workmen * Bonus %age" is wrong.
"3500/No of total days in the month (it may be 28 to 31)) * No of days present by the employee/workmen * Bonus %age" is correct for that particular month.
Abbas.P.S
From India, Bangalore
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Replace the number of working days with the number of total days in a calendar month and the number of days present by the attendance (including holidays and eligible leave, but LWOP will be excluded). Then your formula will be correct for one month.
That is, "3500/No of working days in the month (it may be 24/25/26/27)) * No of days present by the employee/workmen * Bonus %age" is wrong.
"3500/No of total days in the month (it may be 28 to 31)) * No of days present by the employee/workmen * Bonus %age" is correct for that particular month.
Abbas.P.S
From India, Bangalore
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Dear sir,
Thank you for giving me an immediate response regarding the bonus. Is there any particular thing that needs to be fixed by the state government or central government in terms of wages?
As per government norms, are there specific percentages for calculating HRA, DA, TA, PF, ESI, medical issues, etc., in the salary statement? Can anyone suggest a book or website for further reference on salary calculations and the corresponding percentages according to private sector and government norms?
With regards,
Aparna Nanda
From India, Hyderabad
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Thank you for giving me an immediate response regarding the bonus. Is there any particular thing that needs to be fixed by the state government or central government in terms of wages?
As per government norms, are there specific percentages for calculating HRA, DA, TA, PF, ESI, medical issues, etc., in the salary statement? Can anyone suggest a book or website for further reference on salary calculations and the corresponding percentages according to private sector and government norms?
With regards,
Aparna Nanda
From India, Hyderabad
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Hi,
I heard that there are various ways to calculate a bonus. I have basic knowledge about bonuses:
1) It will be payable to employees who work in the organization for 30 days.
2) The basic salary should be less than or up to Rs. 10,000.
3) Bonus percentage should be a minimum of 8.33% and a maximum of 20%.
However, I am not clear about the calculation and I am confused about the 3,500 funda and set-off and set-on. Please note that I know you can't spoon-feed me, but please give me some examples about the same. To all those who are reading this, thanks.
From India, Mumbai
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I heard that there are various ways to calculate a bonus. I have basic knowledge about bonuses:
1) It will be payable to employees who work in the organization for 30 days.
2) The basic salary should be less than or up to Rs. 10,000.
3) Bonus percentage should be a minimum of 8.33% and a maximum of 20%.
However, I am not clear about the calculation and I am confused about the 3,500 funda and set-off and set-on. Please note that I know you can't spoon-feed me, but please give me some examples about the same. To all those who are reading this, thanks.
From India, Mumbai
Acknowledge(0)Amend(0)
Hi, I heard that there are various ways to calculate a bonus. I have basic knowledge about a bonus:
1) It will be payable to employees who work in the organization for 30 days.
2) Basic salary should be less than or up to Rs. 10,000.
3) Bonus percentage should be a minimum of 8.33% and a maximum of 20%.
However, I am not clear about the calculation. I am confused about the Rs. 3,500 concept and set-off and set on. Please note that I know you can't spoon-feed me, but please give me some examples regarding the same. To all those who are reading this, thanks.
From India, Mumbai
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1) It will be payable to employees who work in the organization for 30 days.
2) Basic salary should be less than or up to Rs. 10,000.
3) Bonus percentage should be a minimum of 8.33% and a maximum of 20%.
However, I am not clear about the calculation. I am confused about the Rs. 3,500 concept and set-off and set on. Please note that I know you can't spoon-feed me, but please give me some examples regarding the same. To all those who are reading this, thanks.
From India, Mumbai
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[QUOTE=Rajesh Kumar Dubey;1280593]
Dear,
You are thinking in the right direction. But the employee must be entitled to such benefits based on eligibility.
Hi,
I heard that there are various ways to calculate bonuses. I have basic knowledge about bonuses:
1) Bonuses will be payable to employees who work in the organization for 30 days.
2) Basic salary should be less than or up to Rs. 10,000.
3) Bonus percentage should be a minimum of 8.33% and a maximum of 20%.
I am not clear about the calculation and confused about the Rs. 3,500 funda and set-off and set-on. I know that you can't spoon-feed me, but please provide some examples on the same. To all those who are reading this, thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear,
You are thinking in the right direction. But the employee must be entitled to such benefits based on eligibility.
Hi,
I heard that there are various ways to calculate bonuses. I have basic knowledge about bonuses:
1) Bonuses will be payable to employees who work in the organization for 30 days.
2) Basic salary should be less than or up to Rs. 10,000.
3) Bonus percentage should be a minimum of 8.33% and a maximum of 20%.
I am not clear about the calculation and confused about the Rs. 3,500 funda and set-off and set-on. I know that you can't spoon-feed me, but please provide some examples on the same. To all those who are reading this, thank you.
From India, Mumbai
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BONUS CALCULATION FOR W.B.Govt employee for 2010-2011.xls
Employee Benefits.doc