Dear All, Kindly confirm whether bonus is calculated as 8.33% of basic or gross salary.I am confused about it.
From India, Noida
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3From India, Noida
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it is 8.33% of basic salary earned in the previous accounting year.
From India, New Delhi
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From India, New Delhi
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Dear Ritika.S.C, Generally basic + DA will be taken into account for bonus calculation. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Definition of Wages as per the Bonus Act
"Salary or wage" means all remuneration (other than remuneration in respect of overtime work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment. It includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include:
- (i) Any other allowance which the employee is for the time being entitled to;
- (ii) The value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;
- (iii) Any traveling concession;
- (iv) Any bonus (including incentive, production, and attendance bonus);
- (v) Any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;
- (vi) Any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;
- (vii) Any commission payable to the employee.
Explanation: Where an employee is given in lieu of the whole or part of the salary or wage payable to him, free food allowance or free food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to form part of the salary or wage of such an employee.
Payment of Minimum Bonus
Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year.
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effect in relation to such an employee as if for the words "one hundred rupees", the words "sixty rupees" were substituted.
Payment of Maximum Bonus
(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of the minimum bonus payable to the employees under that section, the employer shall, in lieu of such a minimum bonus, be bound to pay to every employee in respect of...
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From India, Madurai
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"Salary or wage" means all remuneration (other than remuneration in respect of overtime work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment. It includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include:
- (i) Any other allowance which the employee is for the time being entitled to;
- (ii) The value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;
- (iii) Any traveling concession;
- (iv) Any bonus (including incentive, production, and attendance bonus);
- (v) Any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;
- (vi) Any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;
- (vii) Any commission payable to the employee.
Explanation: Where an employee is given in lieu of the whole or part of the salary or wage payable to him, free food allowance or free food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to form part of the salary or wage of such an employee.
Payment of Minimum Bonus
Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year.
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effect in relation to such an employee as if for the words "one hundred rupees", the words "sixty rupees" were substituted.
Payment of Maximum Bonus
(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of the minimum bonus payable to the employees under that section, the employer shall, in lieu of such a minimum bonus, be bound to pay to every employee in respect of...
Regards
From India, Madurai
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Definition of "Employee" Under the Bonus Act
As per the Bonus Act, an "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding three thousand and five hundred rupees per month in any industry to perform skilled or unskilled manual, supervisory, managerial, administrative, technical, or clerical work for hire or reward, whether the terms of employment are express or implied.
Bonus Calculation Practices
Some companies will consider Rs. 3500/- as basic wages for bonus calculation, and they calculate it at 8.33% (minimum bonus) or 20% (maximum bonus) based on the surplus. However, many companies provide two months' salary as a bonus, considering all salary components for bonus calculation.
Minimum Bonus Requirement
We should ensure that the bonus should not be less than Rs. 292/- per month for the applicable employees.
From India, Madurai
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As per the Bonus Act, an "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding three thousand and five hundred rupees per month in any industry to perform skilled or unskilled manual, supervisory, managerial, administrative, technical, or clerical work for hire or reward, whether the terms of employment are express or implied.
Bonus Calculation Practices
Some companies will consider Rs. 3500/- as basic wages for bonus calculation, and they calculate it at 8.33% (minimum bonus) or 20% (maximum bonus) based on the surplus. However, many companies provide two months' salary as a bonus, considering all salary components for bonus calculation.
Minimum Bonus Requirement
We should ensure that the bonus should not be less than Rs. 292/- per month for the applicable employees.
From India, Madurai
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You are requested to go through the below-given link for a better understanding of the Payment of Bonus Act, 1965: https://www.google.com/url?q=https:/...5KA5STc0sAehXg
Regards,
From India, Mumbai
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Regards,
From India, Mumbai
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