Hii Seniors, Please help me to know the typs of bonus & which are mandatory for factories
From India, Ahmedabad
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From India, Ahmedabad
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If your business is a factory and has completed five years since its commencement or has made a profit, then a bonus as per the Payment of Bonus Act is mandatory for your establishment. It is payable at least at the rate of 8.33% of the earned gross wages of employees whose salary does not exceed Rs 21,000 per month.
For the calculation part and further understanding, please follow the thread mentioned below:
https://www.citehr.com/647162-small-...c-wage-da.html
The above thread will provide you with a fair idea about the computation of the bonus. Please go through the entire posts thoroughly.
From India, Kannur
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4491For the calculation part and further understanding, please follow the thread mentioned below:
https://www.citehr.com/647162-small-...c-wage-da.html
The above thread will provide you with a fair idea about the computation of the bonus. Please go through the entire posts thoroughly.
From India, Kannur
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What Mr. Madhu T K has explained above, I would like to add the following.
Types of Bonuses in Factories
The type of bonus that is mandatory for any factory is the Bonus as per the Payment of Bonus Act (PB Act). Bonus calculation has two components. One is the quantum of bonus to be calculated for payment across the board, varying between 8.33% to 20%, and the other is individual employee bonus calculation.
Determining the Quantum of Bonus
For determining the quantum of bonus, it is based on Gross Profit from the Balance sheet of the organization, Available surplus, Allocable surplus, Set on & Set off. In the PB Act, there is a detailed description of how to determine all of the above.
Eligibility and Calculation of Individual Bonus
Bonus is a deferred wage; hence, the eligibility of employees for a bonus for a particular financial year depends on the employee's Basic & DA for the previous financial year. If it is ₹21,000 or less, the employee is eligible for a bonus provided he/she has been present for at least 30 days in the financial year. For calculation of the individual bonus amount, it has to be checked what the Basic and DA of the employee were in the previous year. If it is below ₹7,000, the calculation will be based on the actual amount, but if the amount is ₹7,000 or more, then it should be based on ₹7,000 or the minimum wages, whichever is higher. The final individual calculation will be completed after the adjustment of without pay days for the particular employees.
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] www.usdhrs.in
From India, New Delhi
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Types of Bonuses in Factories
The type of bonus that is mandatory for any factory is the Bonus as per the Payment of Bonus Act (PB Act). Bonus calculation has two components. One is the quantum of bonus to be calculated for payment across the board, varying between 8.33% to 20%, and the other is individual employee bonus calculation.
Determining the Quantum of Bonus
For determining the quantum of bonus, it is based on Gross Profit from the Balance sheet of the organization, Available surplus, Allocable surplus, Set on & Set off. In the PB Act, there is a detailed description of how to determine all of the above.
Eligibility and Calculation of Individual Bonus
Bonus is a deferred wage; hence, the eligibility of employees for a bonus for a particular financial year depends on the employee's Basic & DA for the previous financial year. If it is ₹21,000 or less, the employee is eligible for a bonus provided he/she has been present for at least 30 days in the financial year. For calculation of the individual bonus amount, it has to be checked what the Basic and DA of the employee were in the previous year. If it is below ₹7,000, the calculation will be based on the actual amount, but if the amount is ₹7,000 or more, then it should be based on ₹7,000 or the minimum wages, whichever is higher. The final individual calculation will be completed after the adjustment of without pay days for the particular employees.
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] www.usdhrs.in
From India, New Delhi
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