As per the amendment to the Payment of Bonus Bill passed in 2015, when wages or salary exceed ₹7000 or the minimum wages fixed by the government, the bonus will be calculated based on ₹7000 or the minimum wages, whichever is higher.
Calculating Statutory Bonus Based on Basic + DA
My question is whether it is permissible to calculate the statutory bonus as 8.33% of the actual Basic + DA when the Basic + DA meets the minimum wages requirement. For example, if the minimum wages (Basic + DA) is ₹11,694 and the actual Basic + DA of an employee is ₹16,000, can I calculate the bonus as 8.33% of ₹16,000? Please confirm.
From India, Madurai
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Calculating Statutory Bonus Based on Basic + DA
My question is whether it is permissible to calculate the statutory bonus as 8.33% of the actual Basic + DA when the Basic + DA meets the minimum wages requirement. For example, if the minimum wages (Basic + DA) is ₹11,694 and the actual Basic + DA of an employee is ₹16,000, can I calculate the bonus as 8.33% of ₹16,000? Please confirm.
From India, Madurai
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Bonus Calculation Based on Basic Plus DA
No. Since the basic plus DA exceeds Rs 7000, you can take either Rs 7000 (if your industry has no minimum wages fixed) or the minimum wages fixed, i.e., Rs 11694, as the bonus qualifying salary. The actual basic plus DA will not be considered unless there is any agreement with the Union to the contrary.
At the same time, in an eventuality, if the statutory minimum wages fixed are less than Rs 7000, say Rs 6000, and the actual basic plus DA that you pay is Rs 6700, then the actual basic plus DA will be taken as the bonus qualifying salary. Therefore, the actual salary will come into calculation only when it is less than Rs 7000 but more than the statutory minimum wages fixed by the government. Anyway, such a scenario will not arise because in all sectors, the minimum wages are above Rs 10000 across India.
From India, Kannur
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4526No. Since the basic plus DA exceeds Rs 7000, you can take either Rs 7000 (if your industry has no minimum wages fixed) or the minimum wages fixed, i.e., Rs 11694, as the bonus qualifying salary. The actual basic plus DA will not be considered unless there is any agreement with the Union to the contrary.
At the same time, in an eventuality, if the statutory minimum wages fixed are less than Rs 7000, say Rs 6000, and the actual basic plus DA that you pay is Rs 6700, then the actual basic plus DA will be taken as the bonus qualifying salary. Therefore, the actual salary will come into calculation only when it is less than Rs 7000 but more than the statutory minimum wages fixed by the government. Anyway, such a scenario will not arise because in all sectors, the minimum wages are above Rs 10000 across India.
From India, Kannur
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Minimum Wages Basic-DA.xls
Minimum wages- Basic.pdf