Hi,
We are in the engineering industry located in Bangalore. What is the minimum bonus we have to pay? Is it 8.33% of Rs. 7000 or the minimum wages?
Is the engineering industry listed under scheduled employment in Karnataka?
From India, Bengaluru
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We are in the engineering industry located in Bangalore. What is the minimum bonus we have to pay? Is it 8.33% of Rs. 7000 or the minimum wages?
Is the engineering industry listed under scheduled employment in Karnataka?
From India, Bengaluru
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Dear Asif,
The statutory bonus is to be reckoned on the actual wages. When the wages exceed Rs. 7000-00 p.m., the bonus has to be calculated as if the wages were Rs. 7000-00 p.m. only OR the minimum wages fixed for the employment, whichever is higher. Therefore, you have to calculate the minimum bonus of 8.33% on the actual minimum wages fixed when it is higher than the notional wages of Rs. 7000-00. When it happens to be less than Rs. 7000/=, the calculation shall be 8.33% of Rs. 7000-00 p.m. only. This formula is equally applicable to a bonus of any percentage more than 8.33% also.
For your last question, try to find the answer from the website of the Karnataka Govt., Labor Department.
From India, Salem
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6108The statutory bonus is to be reckoned on the actual wages. When the wages exceed Rs. 7000-00 p.m., the bonus has to be calculated as if the wages were Rs. 7000-00 p.m. only OR the minimum wages fixed for the employment, whichever is higher. Therefore, you have to calculate the minimum bonus of 8.33% on the actual minimum wages fixed when it is higher than the notional wages of Rs. 7000-00. When it happens to be less than Rs. 7000/=, the calculation shall be 8.33% of Rs. 7000-00 p.m. only. This formula is equally applicable to a bonus of any percentage more than 8.33% also.
For your last question, try to find the answer from the website of the Karnataka Govt., Labor Department.
From India, Salem
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Dear Umakanthan Sir,
Thank you for your valuable information. Could you please provide the relevant act/rule in this regard?
What about the bonus liability with regards to contract employees? Whether the principal employer is responsible for the bonus.
From India, Bengaluru
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Thank you for your valuable information. Could you please provide the relevant act/rule in this regard?
What about the bonus liability with regards to contract employees? Whether the principal employer is responsible for the bonus.
From India, Bengaluru
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Minimum Wages - General Engineering & Fabrication Industry - 2021-22.pdf