The Key Changes In The Payment Of Bonus (Amendment) Act, 2015
1. Effective April 1, 2014. Retrospective.
2. Eligible Salary (Basic) up to Rs. 21,000/- P.M.
3. The Bonus Calculation Ceiling Limit revised to Rs. 7,000/- Per Month or the Minimum Wages for the Scheduled Employment, as fixed by the appropriate government, whichever is higher.
Now my query is if any employee is getting a basic salary of Rs. 8,000/- P.M., which is over the limit mentioned in the Minimum Wages Act. As per the Minimum Wages, he is to be paid Rs. 7,500 P.M.
In the given situation, on which amount will the bonus calculation be done: Rs. 8,000/- or Rs. 7,500/-?
Thanks,
Mamta
From India, Delhi
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1. Effective April 1, 2014. Retrospective.
2. Eligible Salary (Basic) up to Rs. 21,000/- P.M.
3. The Bonus Calculation Ceiling Limit revised to Rs. 7,000/- Per Month or the Minimum Wages for the Scheduled Employment, as fixed by the appropriate government, whichever is higher.
Now my query is if any employee is getting a basic salary of Rs. 8,000/- P.M., which is over the limit mentioned in the Minimum Wages Act. As per the Minimum Wages, he is to be paid Rs. 7,500 P.M.
In the given situation, on which amount will the bonus calculation be done: Rs. 8,000/- or Rs. 7,500/-?
Thanks,
Mamta
From India, Delhi
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Hi Mamta, As per amendment in the rules for Bonus calculation ceiling, calculation will be done on INR 7500 Regards Neetu
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As per my knowledge, the bonus to be paid on Rs. 8,000. The Act says, Basic (+ DA) or Minimum Wage or Rs. 7,000, whichever is higher.
From India, Chennai
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From India, Chennai
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as per my knowledge the bonus paid Rs7500/- (april to june , july to dec & jan to march three minimum wages taken this is higer Rs.7000/- this amt for bonus wages. mojes pereira
From India, Mumbai
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From India, Mumbai
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See, the rule is as follows:
1. Rs. 7500/-
2. Minimum wages fixed by the State Govt.
3. Amount equal to 8.33% of salary paid in the last year (basically it comes to one month's salary)
The base amount for the calculation of Bonus will be the amount whichever is higher among the above 3 points.
Regards,
Debasish Bhattacharya
From India, New Delhi
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1. Rs. 7500/-
2. Minimum wages fixed by the State Govt.
3. Amount equal to 8.33% of salary paid in the last year (basically it comes to one month's salary)
The base amount for the calculation of Bonus will be the amount whichever is higher among the above 3 points.
Regards,
Debasish Bhattacharya
From India, New Delhi
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Sorry, there is a mistake in my earlier post.
In case the 8.33% salary amount exceeds Rs. 7500/-, then Rs. 7500/- will be treated as the base for bonus calculation.
For example:
1. Salary equal to 8.33% amounting to Rs. 8000/-
2. Minimum wage is Rs. 7000/-
In this scenario, the bonus will be calculated based on Rs. 7500/-
Regards,
Debasish Bhattacharya
From India, New Delhi
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In case the 8.33% salary amount exceeds Rs. 7500/-, then Rs. 7500/- will be treated as the base for bonus calculation.
For example:
1. Salary equal to 8.33% amounting to Rs. 8000/-
2. Minimum wage is Rs. 7000/-
In this scenario, the bonus will be calculated based on Rs. 7500/-
Regards,
Debasish Bhattacharya
From India, New Delhi
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According to my understanding, as per the new amendment, the bonus will be calculated as follows:
Bonus Calculation Method
Minimum Bonus at 8.33% of Basic + DA (maximum 20%), keeping in mind a ceiling of Rs. 7000/- or the applicable minimum wages, whichever is higher. That is, where Basic + DA exceeds Rs. 7000/- or the minimum wages, the bonus will be calculated on Rs. 7000/- or the minimum wages, whichever is higher. This applies to employees earning less than Rs. 21000/- (Basic + DA).
In other words, those earning more than Rs. 7000/- or the minimum wages will receive an equal bonus regardless of their salary (Basic + DA) up to the cap of Rs. 21000/-.
Please explain/clarify if this is incorrect.
From India, Ahmedabad
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Bonus Calculation Method
Minimum Bonus at 8.33% of Basic + DA (maximum 20%), keeping in mind a ceiling of Rs. 7000/- or the applicable minimum wages, whichever is higher. That is, where Basic + DA exceeds Rs. 7000/- or the minimum wages, the bonus will be calculated on Rs. 7000/- or the minimum wages, whichever is higher. This applies to employees earning less than Rs. 21000/- (Basic + DA).
In other words, those earning more than Rs. 7000/- or the minimum wages will receive an equal bonus regardless of their salary (Basic + DA) up to the cap of Rs. 21000/-.
Please explain/clarify if this is incorrect.
From India, Ahmedabad
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NATION FLOUR LEVEL MINIMUM WAGES 2017 AMENDMENT.pdf