Dear Sir,
I have a confusion regarding bonus calculation. Suppose an employee has a basic salary of Rs 8000, can we consider Rs 3500 as the maximum amount and calculate 8.33% of Rs 3500 as the bonus? That would be Rs 3500*12*8.33/100 = Rs 3499.
Please guide me.
From India, Bangalore
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I have a confusion regarding bonus calculation. Suppose an employee has a basic salary of Rs 8000, can we consider Rs 3500 as the maximum amount and calculate 8.33% of Rs 3500 as the bonus? That would be Rs 3500*12*8.33/100 = Rs 3499.
Please guide me.
From India, Bangalore
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There are two components in respect of the calculation of the bonus.
1) Eligible limit: An employee who draws a basic salary of Rs. 10,000/- is eligible to get a bonus in the respective financial year.
2) Applicable limit: An employee, even if they draw a salary less than 10K, the bonus is applicable only up to Rs. 3,500/-
In your case, what you have calculated is correct.
From India, New Delhi
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221) Eligible limit: An employee who draws a basic salary of Rs. 10,000/- is eligible to get a bonus in the respective financial year.
2) Applicable limit: An employee, even if they draw a salary less than 10K, the bonus is applicable only up to Rs. 3,500/-
In your case, what you have calculated is correct.
From India, New Delhi
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Your above calculation is almost correct, but a small error happened. 8.33% is the percentage convertion of 1/12. Accordingly the calculation of Bonus is 3500x12x1/12 = 3500, not 3499. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Dear All,
I need one more clarity regarding the basic wage criteria in the following cases:
1. If an employee has a basic wage of Rs 2400, will he be eligible for Rs 2500 for calculating the bonus?
2. If an employee has a basic wage of Rs 3800, will we consider Rs 3500 for calculating the bonus?
Please correct me if I am wrong.
From India, Bangalore
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I need one more clarity regarding the basic wage criteria in the following cases:
1. If an employee has a basic wage of Rs 2400, will he be eligible for Rs 2500 for calculating the bonus?
2. If an employee has a basic wage of Rs 3800, will we consider Rs 3500 for calculating the bonus?
Please correct me if I am wrong.
From India, Bangalore
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The salary for calculation will be actual subject to ceiling of Rs. 3500 per month. Accordingly 2400 will be treated as 2400 itself. 3800 will be treated as 3500. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Hi,
Bonus is paid to employees who have worked for more than 30 days. Bonuses can be paid based on the profitability of the company. If the company is making a good profit, bonuses can be paid accordingly. Generally, companies will pay one month's Basic+DA or one month's Gross (usually IT companies).
As per statutory regulations, there is a ceiling for bonuses at 3500 (Basic+DA), and 8.33% is paid on this amount. Even if Basic+DA exceeds 3500 but is less than 10000, employees can be paid based on the 3500 ceiling. However, those who draw Basic+DA exceeding 10000 are not eligible for a bonus.
From India, Bangalore
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Bonus is paid to employees who have worked for more than 30 days. Bonuses can be paid based on the profitability of the company. If the company is making a good profit, bonuses can be paid accordingly. Generally, companies will pay one month's Basic+DA or one month's Gross (usually IT companies).
As per statutory regulations, there is a ceiling for bonuses at 3500 (Basic+DA), and 8.33% is paid on this amount. Even if Basic+DA exceeds 3500 but is less than 10000, employees can be paid based on the 3500 ceiling. However, those who draw Basic+DA exceeding 10000 are not eligible for a bonus.
From India, Bangalore
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Sir, That means upto 3500(i.e upto 3499 we will calculate bonus on 3499*8.33%*12) and above 3500 we will lock in3500.
From India, Bangalore
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From India, Bangalore
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Regarding minimum bonus the above calculation is correct. But bonus is payable upto 20% in accordance with the allocable surplus. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Dear HR Can any one explain me about Allocable surplus........... Wait for valuable reply With regards Amit Trada
From India, Ahmadabad
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From India, Ahmadabad
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After applying (or deducting) direct taxes, depreciation, developmental rebate, etc., on gross profit, the available surplus will be arrived at.
For companies other than banking institutions, the allocable surplus is 67% of the available surplus. For other establishments, it will be 60%.
Abbas. P.S
From India, Bangalore
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For companies other than banking institutions, the allocable surplus is 67% of the available surplus. For other establishments, it will be 60%.
Abbas. P.S
From India, Bangalore
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