hi chanda its not that you r getting bonus twice its your performance reward. bonus is paid once in a year and its minimum is 8.33% and maximum is 20 5 for all. with regards sikata
From India, Sambalpur
From India, Sambalpur
Dear Friends,
I guess its all the simple matter but still confusing.
Deepak: First of all thanks a lot for sharing valuable information about Bonus. But still what i feel is the bonus linked with production is different with what our friend Chanda is mentioning in this post.
And according to me the Bonus act doesnt speak about different slabs for different people in the organisation. Correct me if i am wrong.
Regards
Amith R.
From India, Bangalore
16I guess its all the simple matter but still confusing.
Deepak: First of all thanks a lot for sharing valuable information about Bonus. But still what i feel is the bonus linked with production is different with what our friend Chanda is mentioning in this post.
And according to me the Bonus act doesnt speak about different slabs for different people in the organisation. Correct me if i am wrong.
Regards
Amith R.
From India, Bangalore
Dear Hayram, I have attached one excel file containing calculation of Gratuity, hope it will be of some use for you. Regards Amith R.
From India, Bangalore
From India, Bangalore
Dear All, i think Chanda is taking about performance bonus laid down by company having linked with deliverables etc.and not Bonus under Payment of Bonus Act 1965. Regards, ACCHR
From India, Mumbai
From India, Mumbai
Dear Amit/Deepali,:icon6: :-P
May be I have given a bit far answer from the right querry, but i tried a lot to understand the query first. At a moment I felt it's something related with performance Bonus, but later on made corrected with reason like it is calculated on productivity, evaluating the performance, which again clarifies it Performance Bonus.......but seems matter yet to be more elaborated by the thread owner.
secondly as Deepali has asked to give comments, would like to clarify one thing, whether a company fixes the percentage of Bonus or it may depends on various techniques as Scorecard, Appraisals, or performance growth of the company, it never goes beyond the fixed limit of 20% isn't it??
From China
May be I have given a bit far answer from the right querry, but i tried a lot to understand the query first. At a moment I felt it's something related with performance Bonus, but later on made corrected with reason like it is calculated on productivity, evaluating the performance, which again clarifies it Performance Bonus.......but seems matter yet to be more elaborated by the thread owner.
secondly as Deepali has asked to give comments, would like to clarify one thing, whether a company fixes the percentage of Bonus or it may depends on various techniques as Scorecard, Appraisals, or performance growth of the company, it never goes beyond the fixed limit of 20% isn't it??
From China
Dear Friends, This tabel is ueful for you.Please find the attached file herewith. Thanks & Regards, Dipali Lakhani
From India, Ahmadabad
From India, Ahmadabad
Dear All,
Going through all reply I want to add that as per Bonus Act,1965 -a special provision is given for payment of Bonus linked with performance, but for this agreement should be there with union and for valid agreement every agreement should be registered at Labour Dept. In explanation of this special clause it is clearly mentioned that performance based bonus should not be less then 8.33% and not more than 20%.
So it is cleared that Bonus given under Bonus Act whether linked with performance (under any agreement) or linked with profit -minimum limit is 8.33% and max is 20%. It can be shown in Form C.
Going beyond Act any organisation is free to give performance base bonus to its employees as per its own policy. Performance base bonus to HR executive may be 25% or any % age fixed by the management. It depends upon Organisation Policy.
Thanks,
From India, Lucknow
Going through all reply I want to add that as per Bonus Act,1965 -a special provision is given for payment of Bonus linked with performance, but for this agreement should be there with union and for valid agreement every agreement should be registered at Labour Dept. In explanation of this special clause it is clearly mentioned that performance based bonus should not be less then 8.33% and not more than 20%.
So it is cleared that Bonus given under Bonus Act whether linked with performance (under any agreement) or linked with profit -minimum limit is 8.33% and max is 20%. It can be shown in Form C.
Going beyond Act any organisation is free to give performance base bonus to its employees as per its own policy. Performance base bonus to HR executive may be 25% or any % age fixed by the management. It depends upon Organisation Policy.
Thanks,
From India, Lucknow
hai deepak can you explain the formula for caliculating the bonus as per my knowledge (total wage on pertucular year)/(total number of days presented by employee)*8.33 is correct or not i have doubt about it
thanks for your Information bye
From India, Visakhapatnam
thanks for your Information bye
From India, Visakhapatnam
Hello All,
I am agree with Deepak's explanation on Bonus. But I guess Chanda is having some different query. Unknowingly or I don't know, Bonus is mixed with Performance Pay. In our organization we call it Variable Pay (Performance Pay) and we get it every quarter, the calculation of this Pay is depends on the Team Performance. Sometimes it goes above 100% or below 90%, but this doesn't mean we are getting money beyond our CTC. Standard amount is fixed in CTC. Each quarter we get approx. 4-5K (Depending on performance). I don't know on what basis this amount is calculated and how it is distributed within a team. Every organization has their own policies.
Chanda,
If you are getting Bonus above 20%, then your organization might have different policies to handle it. I can give you example of my own. In Yr. 2006, I got bonus with the rate of 8.33% just because my basic salary was below 10K (monthly). Many employees in our organization didn't received it.
(FYI, I am from IT industry and sorry if the rules/processes/policies are different than production/manufacturing)
Please clear if I am wrong.
Thanks,
Kishor
From India, Pune
I am agree with Deepak's explanation on Bonus. But I guess Chanda is having some different query. Unknowingly or I don't know, Bonus is mixed with Performance Pay. In our organization we call it Variable Pay (Performance Pay) and we get it every quarter, the calculation of this Pay is depends on the Team Performance. Sometimes it goes above 100% or below 90%, but this doesn't mean we are getting money beyond our CTC. Standard amount is fixed in CTC. Each quarter we get approx. 4-5K (Depending on performance). I don't know on what basis this amount is calculated and how it is distributed within a team. Every organization has their own policies.
Chanda,
If you are getting Bonus above 20%, then your organization might have different policies to handle it. I can give you example of my own. In Yr. 2006, I got bonus with the rate of 8.33% just because my basic salary was below 10K (monthly). Many employees in our organization didn't received it.
(FYI, I am from IT industry and sorry if the rules/processes/policies are different than production/manufacturing)
Please clear if I am wrong.
Thanks,
Kishor
From India, Pune
CALCULATION OF BONUS:
The method for calculation of annual bouns is as follow:
- Calculate the gross profit profit in the manner specified in-
- First Schedule, in case of a banking company, or
- Second Schedule, in any other case.
- Calculate the Available Surplus.
Available Surplus = A+B, where A = Gross Profit – Depreciation admissible u/s 32 of the Income tax Act - Development allowance - Direct taxes payable for the accounting year (calculated as per Sec.7) – Sums specified in the Third Schedule.
B = Direct Taxes (calculated as per Sec. 7) in respect of gross profits for the immediately preceding accounting year – Direct Taxes in respect of such gross profits as reduced by the amount of bonus, for the immediately preceding accounting year. - Calculate Allocable Surplus
Allocable Surplus = 60% of Available Surplus, 67% in case of foreign companies. - Make adjustment for ‘Set-on’ and ‘Set-off’. For calculating the amount of bonus in respect of an accounting year, allocable surplus is computed after considering the amount of set on and set offf from the previous years, as illustrated in Fourth Schedule.
- The allocable surplus so computed is distributed amongst the employees in proportion to salary or wages received by them during the relevant accounting year.
From China
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