Yes, I read the same about the amendments online in other articles, and as per CA Hitesh, the limit for coverage of employees and the limit for calculation of bonuses have been increased under the act. But I am still confused about when these amendments were implemented. Is it retrospective, or from 2015/16?
From India, New Delhi
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1From India, New Delhi
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Retrospective implementation has been stayed by the high courts. Therefore, at the moment, pay a higher bonus for the current year. Once the court decides on retrospective implementation, you need to act accordingly.
From India, Mumbai
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From India, Mumbai
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Minimum wages are for 26 days, while for calculating Statutory Bonus (as per the Payment of Bonus Act), I think we are required to do calculations based on 30 days per month. Does this mean that I should take the monthly minimum wage as per the latest notification of my state, divide by 26, and then multiply by 30 to arrive at the minimum wage that should be used for Bonus calculation?
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Bonus is computed not based in 39 days but based in a % of salary cap earned for the previous year So the computation of 26 days and 30 days does not matter
From India, Mumbai
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From India, Mumbai
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In that case Banerjee ji, will you please show me the calculation of Bonus for a person (software developer) earning Rs 19,000/- of Basic Salary per month in Rajasthan where the minimum wage as of today is Rs 271/- per day or Rs 7046 per month for highly skilled category. These minimum wages are being quoted from the notification of Rajasthan Govt. I have not performed any calculation here.
For more info you can see the notification on http://labour.rajasthan.gov.in/Notification.aspx The last item on this page (point 25 has the notification in Hindi) go to page 11 of 12 of this notification to see the minimum wages of a highly skilled worker. As you can see Rs 7046 is actually Rs 271 * 26 days. Thanks..awaiting your reply.
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For more info you can see the notification on http://labour.rajasthan.gov.in/Notification.aspx The last item on this page (point 25 has the notification in Hindi) go to page 11 of 12 of this notification to see the minimum wages of a highly skilled worker. As you can see Rs 7046 is actually Rs 271 * 26 days. Thanks..awaiting your reply.
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Forgot to mention, the bonus has to be calculated at 20% in the case of our company. So, please do your calculation based on 20%. Will it be 20% of Rs 7,046, 20% of Rs 7,000, 20% of Rs 8,130 (which is 7,046 * 30/26), or 20% of Rs 8,401 (7,046 * 31/26 if the month has 31 days)?
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Payment of Gratuity Amendment Bill 2010.pdf