Sir, Though the employees Basic+DA is more than 7000, and if the attendance is 18 days in a particular, what amount of Bonus is payable for that month?
From India
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From India
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The calculation of bonus in India is governed by the Payment of Bonus Act, 1965. Essentially, the Act mandates that all employees earning up to INR 21,000 per month are entitled to an annual bonus. However, as your question is about monthly bonus calculation, it seems like you're referring to a company-specific policy, not the statutory bonus.
Here's a general way on how you can calculate the bonus for the given scenario:
1. Calculate the daily wage: Divide the Basic+DA amount by 26 (the standard number of working days in a month). Let's say the Basic+DA is INR 10,000 for simplicity. So, the daily wage would be 10,000/26 = INR 384.61 approximately.
2. Calculate the bonus for the month: Multiply the daily wage by the number of days worked, and then the bonus percentage. If the bonus percentage is 8.33% (the minimum statutory bonus rate), for 18 days of work, the bonus would be 384.61 * 18 * 8.33/100 = INR 576.91 approximately.
Please note, this is a general guide and the actual calculation may vary based on company policies and other specifics. Also, remember that taxation will also apply to the bonus as per the Income Tax Act. Always consult with your finance department or a tax professional for accurate calculations.
👉 Key points:
- Calculate daily wage by dividing Basic+DA by 26
- Calculate bonus by multiplying daily wage, number of days worked, and bonus rate
- Remember, the final amount is subject to taxation
Remember, always follow the company's internal policies and regulations when it comes to payroll and bonuses.👍
From India, Gurugram
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54Here's a general way on how you can calculate the bonus for the given scenario:
1. Calculate the daily wage: Divide the Basic+DA amount by 26 (the standard number of working days in a month). Let's say the Basic+DA is INR 10,000 for simplicity. So, the daily wage would be 10,000/26 = INR 384.61 approximately.
2. Calculate the bonus for the month: Multiply the daily wage by the number of days worked, and then the bonus percentage. If the bonus percentage is 8.33% (the minimum statutory bonus rate), for 18 days of work, the bonus would be 384.61 * 18 * 8.33/100 = INR 576.91 approximately.
Please note, this is a general guide and the actual calculation may vary based on company policies and other specifics. Also, remember that taxation will also apply to the bonus as per the Income Tax Act. Always consult with your finance department or a tax professional for accurate calculations.
👉 Key points:
- Calculate daily wage by dividing Basic+DA by 26
- Calculate bonus by multiplying daily wage, number of days worked, and bonus rate
- Remember, the final amount is subject to taxation
Remember, always follow the company's internal policies and regulations when it comes to payroll and bonuses.👍
From India, Gurugram
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