Dear Sir, I am working with Pvt Ltd Company since Nine years. At present my monthly salary is Rs 18000. How can i calculate my bonus amount.
From India, Kannur
Acknowledge(0)
Amend(0)
6From India, Kannur
Acknowledge(0)Amend(0)
Bonus to be paid under the Payment of Bonus Act, 1965 is to be calculated as follows:
It depends upon the percentage on which your company wants to give a bonus to its employees. The minimum bonus is 8.33% of the basic salary earned during the accounting year, and the maximum is 20% under the Payment of Bonus Act, 1965.
Eligibility: Bonus under the Payment of Bonus Act, 1965 is required to be given to employees whose salary (Basic) is less than Rs. 3500.00 per month during the accounting year for which the bonus is to be paid.
Bonus is to be calculated for eligible employees assuming the salary (Basic) as Rs. 2500.00 per month or less if it is less than Rs. 2500.00.
Multiply the yearly sum of the salary thus calculated as per the above clause 3 with the rate of the bonus. The figure is the bonus payable to the employee under the act.
BONUS CALCULATION PARAMETERS
CASE 1 BASIC LESS THAN OR EQUAL TO 3500 = BONUS = ACTUAL BASIC X (BONUS MONTHS) X 20%
CASE 2 BASIC MORE THAN 3500 UP TO 8400 = BONUS = Rs. 3500 X (BONUS MONTHS) X 20%, EXGRATIA = 0
CASE 3 BASIC MORE THAN 8400 & LESS THAN 10000 = BONUS = Rs. 3500 X (BONUS MONTHS) X 20%, EXGRATIA = BASIC SALARY - 8400
CASE 4 BASIC MORE THAN 10000 = BONUS = 0, EXGRATIA = 1 MONTH BASIC SALARY
CASE 5 BASIC CHANGES DURING THE YEAR
EX: 2300 to 3500 = BONUS = (2300 X months paid X 20%) + (3500 X months paid X 20%), exgratia = 0
EX: 3500 to 5000 = BONUS = (3500 X months paid X 20%) + (3500 X months paid X 20%), exgratia = 0
EX: 5000 for 6 months to 8900 for 6 months = BONUS = (3500*6*20%) + (3500*6*20%) = 8400, exgratia = (8900*6/12) - (8400*6/12) = 250
EX: 8900 for 4 months to 12000 for 8 months = BONUS = (3500*4*20%) = 2800, exgratia = {(8900*4/12) - (8400*4/12)} + {(12000*8/120)}
From India, Udaipur
Acknowledge(2)
Amend(0)
It depends upon the percentage on which your company wants to give a bonus to its employees. The minimum bonus is 8.33% of the basic salary earned during the accounting year, and the maximum is 20% under the Payment of Bonus Act, 1965.
Eligibility: Bonus under the Payment of Bonus Act, 1965 is required to be given to employees whose salary (Basic) is less than Rs. 3500.00 per month during the accounting year for which the bonus is to be paid.
Bonus is to be calculated for eligible employees assuming the salary (Basic) as Rs. 2500.00 per month or less if it is less than Rs. 2500.00.
Multiply the yearly sum of the salary thus calculated as per the above clause 3 with the rate of the bonus. The figure is the bonus payable to the employee under the act.
BONUS CALCULATION PARAMETERS
CASE 1 BASIC LESS THAN OR EQUAL TO 3500 = BONUS = ACTUAL BASIC X (BONUS MONTHS) X 20%
CASE 2 BASIC MORE THAN 3500 UP TO 8400 = BONUS = Rs. 3500 X (BONUS MONTHS) X 20%, EXGRATIA = 0
CASE 3 BASIC MORE THAN 8400 & LESS THAN 10000 = BONUS = Rs. 3500 X (BONUS MONTHS) X 20%, EXGRATIA = BASIC SALARY - 8400
CASE 4 BASIC MORE THAN 10000 = BONUS = 0, EXGRATIA = 1 MONTH BASIC SALARY
CASE 5 BASIC CHANGES DURING THE YEAR
EX: 2300 to 3500 = BONUS = (2300 X months paid X 20%) + (3500 X months paid X 20%), exgratia = 0
EX: 3500 to 5000 = BONUS = (3500 X months paid X 20%) + (3500 X months paid X 20%), exgratia = 0
EX: 5000 for 6 months to 8900 for 6 months = BONUS = (3500*6*20%) + (3500*6*20%) = 8400, exgratia = (8900*6/12) - (8400*6/12) = 250
EX: 8900 for 4 months to 12000 for 8 months = BONUS = (3500*4*20%) = 2800, exgratia = {(8900*4/12) - (8400*4/12)} + {(12000*8/120)}
From India, Udaipur
Acknowledge(2)Amend(0)
exgratia is another name of Bonus. Now a days u wont find Bonus in most of the companies sal slip,, the term used now is Ex gratia... Am I right Vikram ???
From India, Ahmedabad
Acknowledge(3)
Amend(0)
From India, Ahmedabad
Acknowledge(3)Amend(0)
Hi, I am a senior software engineer in a reputed IT company, working for the last 4 years. My basic pay exceeds Rs. 12,000 per month. I am surprised that my company is paying me a Rs. 80,000 bonus for the current year. They could easily do away with the bonus by stating that there is no bonus for employees drawing a basic salary above Rs. 10,000. Can somebody please help me understand the calculation? I am unsure about the rate, whether it is 8.33% or 20%.
From India
Acknowledge(3)
Amend(0)
From India
Acknowledge(3)Amend(0)
Hi Shailesh,
The bonus is paid in the current year, but it is based on how many days the employee worked in the last year. The percentage of the bonus depends on the company or its management decision, but as per government rules, they cannot go below 8.33% or exceed 20%. This is the limit under which all bonuses must be calculated.
For example, if an employee has a basic salary of 6000 and joined in May 2010, they would receive the bonus in 2011 after the completion of the financial year on March 31st. The formula to calculate the bonus is: Basic + DA / # days in a month x actual present days x 8.33% or 20%.
Using the above formula, calculate the amount per month and arrive at the final bonus amount.
Please let me know if you need any further clarification or assistance.
Thank you.
From India, Kolhapur
Acknowledge(1)Amend(0)
The bonus is paid in the current year, but it is based on how many days the employee worked in the last year. The percentage of the bonus depends on the company or its management decision, but as per government rules, they cannot go below 8.33% or exceed 20%. This is the limit under which all bonuses must be calculated.
For example, if an employee has a basic salary of 6000 and joined in May 2010, they would receive the bonus in 2011 after the completion of the financial year on March 31st. The formula to calculate the bonus is: Basic + DA / # days in a month x actual present days x 8.33% or 20%.
Using the above formula, calculate the amount per month and arrive at the final bonus amount.
Please let me know if you need any further clarification or assistance.
Thank you.
From India, Kolhapur
Acknowledge(1)Amend(0)
Mr. Vikram ji, Will you please re-calculate the latest Bonus calculation as per new Bonus amendment. i.e. from Rs.10,000/- to Rs. 21000/- Regards, PBS KUMAR
From India, Kakinada
Acknowledge(1)
Amend(0)
From India, Kakinada
Acknowledge(1)Amend(0)
Hello Everyone,
Amendment in The Payment of Bonus Act, 1965.
This is to inform you that both the Houses of the Parliament have passed the Payment of Bonus Act amendment Bill yesterday. As per the news broadcasted on Radio, the said bill has been passed with retrospective effect i.e. from financial year 2014-2015.
Prior to the said amendment, the employee was defined under section 2(13) which reads as under:
“employee means any person (other than an apprentice) employed on salary or wages not exceeding Rs.10,000/- per month in any industry to do any skill, manual, supervisory, managerial, administrative, technical or clerical work for higher or reward whether the terms of employment be expressed or implied”.
As per the amendment the salary/wage limit of Rs.10,000/- has been enhanced to Rs. 21,000/- per month. The nett financial impact of the same will be that those employees who are drawing salary/wages not more than Rs.21,000/- per month and those who are working in skill, manual, supervisory, managerial, administrative, technical or clerical work, will also be entitled to receive bonus henceforth.
Prior to this amendment as per section 12 where the salary/wages of an eligible employee exceeds Rs.3500/- per month (Rupees Three Thousand Five Hundred Only) the bonus payable to such employee under this act i.e. minimum @ 8.33% or maximum @20% as the case may be, was calculated as if salary or wages or such an employee was Rs.3500/- (Rupees Three Thousand Five Hundred Only).
In the aforesaid amendment the figure of Rs.3500/- (Rupees Three Thousand Five Hundred Only) has been increased to Rs.7,000/- (Rupees Seven Thousand Only) per month. Prior to the amendment the eligible employee was entitled to receive minimum bonus of Rs.3500/- per annum @ 8.33% and a maximum bonus of Rs.8400 (Rupees Eight Thousand Four Hundred Only) @ 20% as the case may be. Now the employer will have to pay minimum bonus of Rs.7,000 per annum @8.33% instead of Rs.3500 per annum and maximum bonus of Rs.16,800/- @20% instead of Rs.8,400/- per annum.
Since the amendment is with retrospective effect, for the financial year 2014-2015, the employer will have to pay difference between Rs.3500 and Rs.7000 per annum, in case the employer has paid minimum bonus @8.33% during the said financial year and in case if the employer has paid maximum bonus of Rs.8400 @20% during the said financial year, such a employer will have to pay the difference between Rs.8400 and Rs.16800/-. In all other cases the employer has to pay the proportionate difference, as may be the case.
In addition this, the employer will have to pay the bonus to those employees whose salary i.e. basic + DA was more than Rs.10,000 but less than Rs. 21,000/- per month during the said financial year 2014-2015.
Regards,
Ubaid Raheman.
Dy. Manager HR.
From India, Mumbai
Acknowledge(4)
Amend(0)
Amendment in The Payment of Bonus Act, 1965.
This is to inform you that both the Houses of the Parliament have passed the Payment of Bonus Act amendment Bill yesterday. As per the news broadcasted on Radio, the said bill has been passed with retrospective effect i.e. from financial year 2014-2015.
Prior to the said amendment, the employee was defined under section 2(13) which reads as under:
“employee means any person (other than an apprentice) employed on salary or wages not exceeding Rs.10,000/- per month in any industry to do any skill, manual, supervisory, managerial, administrative, technical or clerical work for higher or reward whether the terms of employment be expressed or implied”.
As per the amendment the salary/wage limit of Rs.10,000/- has been enhanced to Rs. 21,000/- per month. The nett financial impact of the same will be that those employees who are drawing salary/wages not more than Rs.21,000/- per month and those who are working in skill, manual, supervisory, managerial, administrative, technical or clerical work, will also be entitled to receive bonus henceforth.
Prior to this amendment as per section 12 where the salary/wages of an eligible employee exceeds Rs.3500/- per month (Rupees Three Thousand Five Hundred Only) the bonus payable to such employee under this act i.e. minimum @ 8.33% or maximum @20% as the case may be, was calculated as if salary or wages or such an employee was Rs.3500/- (Rupees Three Thousand Five Hundred Only).
In the aforesaid amendment the figure of Rs.3500/- (Rupees Three Thousand Five Hundred Only) has been increased to Rs.7,000/- (Rupees Seven Thousand Only) per month. Prior to the amendment the eligible employee was entitled to receive minimum bonus of Rs.3500/- per annum @ 8.33% and a maximum bonus of Rs.8400 (Rupees Eight Thousand Four Hundred Only) @ 20% as the case may be. Now the employer will have to pay minimum bonus of Rs.7,000 per annum @8.33% instead of Rs.3500 per annum and maximum bonus of Rs.16,800/- @20% instead of Rs.8,400/- per annum.
Since the amendment is with retrospective effect, for the financial year 2014-2015, the employer will have to pay difference between Rs.3500 and Rs.7000 per annum, in case the employer has paid minimum bonus @8.33% during the said financial year and in case if the employer has paid maximum bonus of Rs.8400 @20% during the said financial year, such a employer will have to pay the difference between Rs.8400 and Rs.16800/-. In all other cases the employer has to pay the proportionate difference, as may be the case.
In addition this, the employer will have to pay the bonus to those employees whose salary i.e. basic + DA was more than Rs.10,000 but less than Rs. 21,000/- per month during the said financial year 2014-2015.
Regards,
Ubaid Raheman.
Dy. Manager HR.
From India, Mumbai
Acknowledge(4)Amend(0)
According to Section 12 of the Payment of Bonus Act, 1965, where the salary or wages of an employee exceed Rs 3500 per month, the Bonus payable to such employee under Section 10 or, as the case may be, under Section 11, shall be calculated as if his salary or wage were Rs 3500 per month. Therefore, the ceiling on salary or wages on which Bonus is to be paid to employees under the Payment of Bonus Act is Rs 3500 only.
Read more at http://asklabourproblem.info/
From India, Pune
Acknowledge(0)Amend(0)
Read more at http://asklabourproblem.info/
From India, Pune
Acknowledge(0)Amend(0)
Dear Ubaid Raheman,
Please be informed that the Kerala High Court has passed an order stating that the said amendment bill shall be effective from the financial year 2015-2016, and the aforementioned bill is cancelled for the financial year 2014-2015. The court order copy is attached.
Thank you.
From India, Indore
Acknowledge(2)Amend(0)
Please be informed that the Kerala High Court has passed an order stating that the said amendment bill shall be effective from the financial year 2015-2016, and the aforementioned bill is cancelled for the financial year 2014-2015. The court order copy is attached.
Thank you.
From India, Indore
Acknowledge(2)Amend(0)
Hi Avinash,
I have gone through the Kerala High Court order dated 27/01/16, but I think its jurisdiction is limited to Kerala State only. This is because:
- Supreme Court orders are applicable nationwide.
- Kerala's jurisdiction is confined to the state itself.
- The petitioners are also residents of Kerala.
- The Kerala High Court order does not mention applicability to the entire country.
Regards,
Ubaid Raheman.
From India, Mumbai
Acknowledge(0)Amend(0)
I have gone through the Kerala High Court order dated 27/01/16, but I think its jurisdiction is limited to Kerala State only. This is because:
- Supreme Court orders are applicable nationwide.
- Kerala's jurisdiction is confined to the state itself.
- The petitioners are also residents of Kerala.
- The Kerala High Court order does not mention applicability to the entire country.
Regards,
Ubaid Raheman.
From India, Mumbai
Acknowledge(0)Amend(0)
Please confirm for calculating bonus salary or wages will be Basic + DA or it can be Gross.
From India, Noida
Acknowledge(0)Amend(0)
From India, Noida
Acknowledge(0)Amend(0)
Please confirm Rs. 21000/- means Only Basis + DA or it will be on Gross. Our company is calculated on Gross. Is there any notification on this.
From India, Noida
Acknowledge(1)
Amend(0)
0
0
From India, Noida
Acknowledge(1)Amend(0)CiteHR.AI
(Fact Checked)-The bonus calculation is usually based on Basic + DA. However, if your company calculates it on the Gross salary, ensure it complies with the Minimum Bonus Act. No specific notification is required for this. Thank you for your query. (1 Acknowledge point)
0
0
Hi, sir.
Please help me. My company paid bonuses in the past years based on working days like 3500/26*Actual WD. However, nowadays, we have heard that if an employee's or worker's earnings (Basic+Allow) are below Rs. 7000, then their bonus will be paid according to their wages for that month.
Please assist me with an Excel sheet reflecting the latest updates.
Pappu Choudhary
Mobile: 9929826868 / 7230051023
Email: pappuchoudhary786@gmail.com
From India, Jaipur
Acknowledge(0)Amend(0)
0
0
Please help me. My company paid bonuses in the past years based on working days like 3500/26*Actual WD. However, nowadays, we have heard that if an employee's or worker's earnings (Basic+Allow) are below Rs. 7000, then their bonus will be paid according to their wages for that month.
Please assist me with an Excel sheet reflecting the latest updates.
Pappu Choudhary
Mobile: 9929826868 / 7230051023
Email: pappuchoudhary786@gmail.com
From India, Jaipur
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-[response] (1 Acknowledge point)
0
0
Bonus calculation is subject to company policy. It is mandatory for employees working at least 30 days and having a basic salary of up to $21k monthly. Some companies give bonuses based on the minimum wage, while others base it on the monthly basic salary. Some companies provide an advance bonus monthly. Generally, companies give an annual bonus.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Hi, Can anybody please confirm, if a employee worked in three months in a financial year then he is entitled for Bonus for three month only. Regards, Deepika
From India, Lucknow
Acknowledge(0)Amend(0)
From India, Lucknow
Acknowledge(0)Amend(0)
Hi, From April to Feb my basic salary is Rs. 20,445/- per month but in march my basic salary is Rs. 22,490/-. am i eligible for bonus?. If yes then how much amount?
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Hi Sir, My Basic+DA= 21,376.00 Please confirm if I am eligible for bonus as I didn’t receive the bonus. please update me o the below mail id Email id- jitendrapal29@gmail.com
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
You are not eligible to receive a bonus from the employer as your wages/salary exceed Rs. 21,000 per month during the accounting year for which the bonus is payable. You are not covered under the definition of employees who are eligible for a bonus due to the wage ceiling set forth in the Payment of Bonus Act, 1965.
R N KHOLA
From India, Delhi
Acknowledge(0)Amend(0)
0
0
R N KHOLA
From India, Delhi
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply is [B]incorrect[/B]. (1 Acknowledge point)
0
0
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc
CiteHR.AI
(Fact Checked)-The Payment of Bonus Act was indeed amended to increase the salary limit to Rs. 21,000. The details provided on calculation and retrospective effect are accurate. (1 Acknowledge point)