Hi, One and all! I want to know how to calculate Bonus in payroll and if it is necessary to provide a bonus to employees? Can anybody share the Excel Sheet For the bonus calculation?
From India, Ernakulam
From India, Ernakulam
Dear Lata, First of all any organization is needed to determine the % of bonus as per PB Act based on gross profit, available surplus, allocable surplus, set on and set off. After that the individual employees calculation to be made based on actual Basic & DA, if actual Basic and DA is 7000/- or more then on the basis of minimum wages or 7000/- which ever is higher. Individual will receive bonus amount best on actual number of days work in the year.
Thanks and regards,
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions,
From India, New Delhi
334Thanks and regards,
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions,
From India, New Delhi
Thanks, Bandopadhyay Sir,
I appreciate your help. I understood now how to calculate the bonus. But why do the employees with a high salary also get the annual bonus by the MNCs? Their Basic goes above 21000 . It means they are not eligible for the bonus. Please clarify.
From India, Ernakulam
I appreciate your help. I understood now how to calculate the bonus. But why do the employees with a high salary also get the annual bonus by the MNCs? Their Basic goes above 21000 . It means they are not eligible for the bonus. Please clarify.
From India, Ernakulam
Dear Lata,
Not alone the Payment of Bonus Act,1965, the standards of benefits set down by any employment law are the minimum only and the conditions associated with such benefits can be relaxed by an individual employer in the interest of the employees of his organization as a whole. Can we say that the employees exceeding the salary threshold do not contribute to the performance of an industrial establishment? If my memory does not fail me, I was told that IT major TCS was granting maternity leave with full salary for a period of 4 months and reimbursement of the entire hospital fees for delivery when the Maternity Benefit Act 1961 allowed only 12 weeks of maternity leave and Rs.2500/= only as medical bonus. I know that still there are employers who calculate and pay bonus on the gross salary of their employees and pay bonus over and above 8.33% in the name of ex-gratia.
Therefore, conferment of better benefits and privileges to his employees over and above the statutory standards is a matter of discretion of an employer.
From India, Salem
Not alone the Payment of Bonus Act,1965, the standards of benefits set down by any employment law are the minimum only and the conditions associated with such benefits can be relaxed by an individual employer in the interest of the employees of his organization as a whole. Can we say that the employees exceeding the salary threshold do not contribute to the performance of an industrial establishment? If my memory does not fail me, I was told that IT major TCS was granting maternity leave with full salary for a period of 4 months and reimbursement of the entire hospital fees for delivery when the Maternity Benefit Act 1961 allowed only 12 weeks of maternity leave and Rs.2500/= only as medical bonus. I know that still there are employers who calculate and pay bonus on the gross salary of their employees and pay bonus over and above 8.33% in the name of ex-gratia.
Therefore, conferment of better benefits and privileges to his employees over and above the statutory standards is a matter of discretion of an employer.
From India, Salem
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Amendment to Payment of Bonus Act 2015.jpg
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