Hi seniors, One of the employee salary is 6000/- PM plz let me know the bonus calculation weather it will calculate... 6000*12*8.33/100 or 7000*12*8.33/100 Regard Sumit charan
From India, Jodhpur
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4From India, Jodhpur
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The Bonus is Rs. 7000/- or the minimum wage which ever is higher, so it will be calculated on 7000 and not 6000
From India, Mumbai
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From India, Mumbai
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If Basic Salary is Rs. 6000/- (Gross Salary Limit is Rs. 21000) then Bonus will Calculate on Rs. 6000/- only, Min. % is 8.33 & Max. % is 20. 6000*12*8.33/100) Regards, S. K. Gupta
From India, undefined
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From India, undefined
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Sir, according to the rule, the bonus should be calculated on 7000 or the minimum wage, whichever is higher. Therefore, if the basic salary is 6000, the bonus will be calculated on 7000/- ceiling limit, not on 6000/-. Please correct me if I am wrong.
From India, Agra
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From India, Agra
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Calculate bonus on basic or minimum wages, whichever is higher. In case the basic wage as per minimum wages applicable to the employee is Rs. 6000 or less, the basic will be considered as Rs. 6000. If the minimum wages are more than Rs. 6000, then the minimum wages will be considered. The Rs. 7000 limit is not applicable.
From India, Mumbai
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From India, Mumbai
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Yes it is on 7000 or mimimum wages applicable as per schduled employment, such as MW in Paper & paper Board is applicable 8245.25 then it will be calculated on 8245.25.
From India, Nagpur
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From India, Nagpur
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Sir, what do you mean by minimum wages? Is it as per the Minimum Wages Act? According to the act, the minimum wages in our state are 7200 per month. Does that mean the bonus shall be calculated based on 7200 and not on the ceiling limit of 7000?
Your view, please.
From India, Agra
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Your view, please.
From India, Agra
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It should be on actual basic pay subject to maximum ceiling - whichever lower (Maximum ceiling has been raised to Rs. 7000 or MW of state - which ever higher)
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21000 is gross salary or basic salary for bonus celing limit? If a employee take 25000 his gross salary then he/she is liable to take bonus from company ?
From India, New Delhi
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From India, New Delhi
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Calculation of Bonus
Taking the demands of the trade unions head-on, Section 12 of the Principal Act has been amended to state that where the salary or wage of an employee exceeds INR 7,000 per month or the minimum wage for the scheduled employment, the bonus payable to such employee shall be calculated as if his salary or wage were INR 7,000 per month or the minimum wage for the scheduled employment, whichever is higher.
The Principal Act provided that the bonus payable to an employee shall be in proportion to his/her salary. However, where an employee's salary was over INR 3,500 per month, for the purposes of calculating the bonus, the salary was to be assumed to be INR 3,500 per month. With a view to maximizing bonus earnings, the Amendment Act has increased the wage ceiling for calculation to INR 7,000 and has also factored in possibilities where the minimum wage payable to such employees may be over INR 7,000, thereby giving employees the flexibility to draw a higher amount as a bonus.
While this appears to be yet another attempt made by the Government at ensuring employee satisfaction, the inclusion of the minimum wage component in calculating the bonus may hinder with the accounting policies of companies having a national presence. It may be noted that in accordance with the provisions of the Minimum Wages Act, 1948, minimum wage rates may be prescribed at a State as well as a Central level. More often than not, the publication of notifications pertaining to minimum wage rates is delayed and has been subject to anomalies. Aggregating relevant data pertaining to minimum wage rates and ensuring that accurate calculations are made for each state may obstruct companies in processing the payment of bonuses.
From India, Mumbai
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Taking the demands of the trade unions head-on, Section 12 of the Principal Act has been amended to state that where the salary or wage of an employee exceeds INR 7,000 per month or the minimum wage for the scheduled employment, the bonus payable to such employee shall be calculated as if his salary or wage were INR 7,000 per month or the minimum wage for the scheduled employment, whichever is higher.
The Principal Act provided that the bonus payable to an employee shall be in proportion to his/her salary. However, where an employee's salary was over INR 3,500 per month, for the purposes of calculating the bonus, the salary was to be assumed to be INR 3,500 per month. With a view to maximizing bonus earnings, the Amendment Act has increased the wage ceiling for calculation to INR 7,000 and has also factored in possibilities where the minimum wage payable to such employees may be over INR 7,000, thereby giving employees the flexibility to draw a higher amount as a bonus.
While this appears to be yet another attempt made by the Government at ensuring employee satisfaction, the inclusion of the minimum wage component in calculating the bonus may hinder with the accounting policies of companies having a national presence. It may be noted that in accordance with the provisions of the Minimum Wages Act, 1948, minimum wage rates may be prescribed at a State as well as a Central level. More often than not, the publication of notifications pertaining to minimum wage rates is delayed and has been subject to anomalies. Aggregating relevant data pertaining to minimum wage rates and ensuring that accurate calculations are made for each state may obstruct companies in processing the payment of bonuses.
From India, Mumbai
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AVIHR-- Your observation is absolutely right. The purpose of adding the minimum wage was an afterthought to avoid further modifications to the bonus ceiling limit, which would automatically get updated along with the hike in minimum wages. While the intention is noble, the hassles in implementing for PAN INDIA present companies are unavoidable.
Many people are still confused about the wage for the calculation of bonus should be Basic pay or Rs. 7000/MW whichever is higher, which was clarified that the limit of 7000/MW is only for the maximum amount of bonus payable.
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Many people are still confused about the wage for the calculation of bonus should be Basic pay or Rs. 7000/MW whichever is higher, which was clarified that the limit of 7000/MW is only for the maximum amount of bonus payable.
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Dear All,
Please guide me on which month to consider for bonus calculation: March, or the minimum wage for April to September, and then October to March as per the revised minimum wage.
Best Regards
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Please guide me on which month to consider for bonus calculation: March, or the minimum wage for April to September, and then October to March as per the revised minimum wage.
Best Regards
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Dear Annonymous, Greetings!! It will be calculated on 6000*8.33/100*12. BW more then Rs. 7000 then only it’ll be 7000*8.33/100*12. Rgds
From India, Delhi
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From India, Delhi
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf