Hi friends,
I am working in an Engineering concern where the bonus is calculated as follows: CTC - 400000 Bonus - 24000 Food coupon - 7500 PF Cont - 6125 Gross salary per month = 400000 - 24000 - 7500 - 6125 = 362375 / 12 = 30198. Actually, the bonus is 6% of the CTC, but how do you calculate the bonus percentage on the salary. Kindly help me out...
Thanks Sowmya
From India, Madras
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14I am working in an Engineering concern where the bonus is calculated as follows: CTC - 400000 Bonus - 24000 Food coupon - 7500 PF Cont - 6125 Gross salary per month = 400000 - 24000 - 7500 - 6125 = 362375 / 12 = 30198. Actually, the bonus is 6% of the CTC, but how do you calculate the bonus percentage on the salary. Kindly help me out...
Thanks Sowmya
From India, Madras
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Hi Somwya,
As per the Bonus Act, the percentage of bonus is a minimum of 8.33% and a maximum of 20%. If the trade union is operative in your company, then the bonus % is calculated as per the % mentioned or agreed upon in the agreement. In my company, we pay a bonus of 8.33% of the basic salary + special allowance, and the remaining 11.67% is adjusted in the salary as other allowance. This is in accordance with our agreement with the trade union. This bonus structure is applicable only to workers; for management cadre employees, we do not provide a bonus. The 6% bonus as mentioned by you is not compliant with the law. The Bonus Act specifies that 8.33% is the minimum bonus to be paid. Please refer to the Bonus Act for clarification.
Regards, Nimish Joshi 09969526325
From India, Mumbai
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As per the Bonus Act, the percentage of bonus is a minimum of 8.33% and a maximum of 20%. If the trade union is operative in your company, then the bonus % is calculated as per the % mentioned or agreed upon in the agreement. In my company, we pay a bonus of 8.33% of the basic salary + special allowance, and the remaining 11.67% is adjusted in the salary as other allowance. This is in accordance with our agreement with the trade union. This bonus structure is applicable only to workers; for management cadre employees, we do not provide a bonus. The 6% bonus as mentioned by you is not compliant with the law. The Bonus Act specifies that 8.33% is the minimum bonus to be paid. Please refer to the Bonus Act for clarification.
Regards, Nimish Joshi 09969526325
From India, Mumbai
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Dear Sowmya,
The bonus is paid to all employees drawing Rs 10,000/pm as wages (please refer to the Minimum Wages Act regarding "Wages") as per the latest amendment. The percentage of bonus is 8.33%, which is mandatory as per the act. Anything above this is decided by the management. For those earning more than 10K, the management may give an ex-gratia, which is solely the prerogative of the management and no one else can decide.
Normally, as per the Payment of Wages Act, wage means Basic Salary + DA. In many organizations where consolidated pay is in practice, they will refer to the Minimum Wages Act for support and split your salary as Basic Pay and special allowance. The crucial point to note is that in any case, the Basic mentioned should not be less than that mentioned in the MWAct for that category.
In your case, you have only mentioned the Gross salary (36K), which will not help in determining the exact bonus. Please check your salary slip where they would have specified the Basic amount and calculate accordingly.
Wishing you all a very Happy Diwali!
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The bonus is paid to all employees drawing Rs 10,000/pm as wages (please refer to the Minimum Wages Act regarding "Wages") as per the latest amendment. The percentage of bonus is 8.33%, which is mandatory as per the act. Anything above this is decided by the management. For those earning more than 10K, the management may give an ex-gratia, which is solely the prerogative of the management and no one else can decide.
Normally, as per the Payment of Wages Act, wage means Basic Salary + DA. In many organizations where consolidated pay is in practice, they will refer to the Minimum Wages Act for support and split your salary as Basic Pay and special allowance. The crucial point to note is that in any case, the Basic mentioned should not be less than that mentioned in the MWAct for that category.
In your case, you have only mentioned the Gross salary (36K), which will not help in determining the exact bonus. Please check your salary slip where they would have specified the Basic amount and calculate accordingly.
Wishing you all a very Happy Diwali!
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Dear All,
Hope you are all doing fine.
I need some information on Salary definitions: As per the Bonus Act, section 2(21) states that it includes all remunerations plus DA but does not encompass time-based allowances. However, the general practice is that it is based on Basic Plus DA. Please help me understand more about the salary definition.
Thanks,
Vinay Kumar
From India, Bangalore
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Hope you are all doing fine.
I need some information on Salary definitions: As per the Bonus Act, section 2(21) states that it includes all remunerations plus DA but does not encompass time-based allowances. However, the general practice is that it is based on Basic Plus DA. Please help me understand more about the salary definition.
Thanks,
Vinay Kumar
From India, Bangalore
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Dear All [URGENT]
I am working in a company called Greta Group, with the corporate office located in Chennai. We have a power plant in Chandrapur district, Maharashtra. Currently, I would like to know some information regarding the criteria for bonus in Maharashtra. Are the 8.33% bonuses applicable in Maharashtra? If so, who falls under this percentage? Are there any salary ceilings set by companies in Maharashtra?
Contact: 9677344278
From India, Chennai
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I am working in a company called Greta Group, with the corporate office located in Chennai. We have a power plant in Chandrapur district, Maharashtra. Currently, I would like to know some information regarding the criteria for bonus in Maharashtra. Are the 8.33% bonuses applicable in Maharashtra? If so, who falls under this percentage? Are there any salary ceilings set by companies in Maharashtra?
Contact: 9677344278
From India, Chennai
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Hi Any one can give me guidance about the contract labour laws, rules and regulations to fallow and what are the record should fallow in Tamil Nadu
From India, Chennai
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From India, Chennai
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