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Calculation of bonus is based on gross profit, allocable surplus, available surplus. Hence it can be calculated by someone from accounts & finance.
From India, Mumbai
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From India, Mumbai
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There are a few types of bonuses -
1) Incentive bonus - linked to the performance of an employee (this is to encourage him/her to perform even better).
2) Annual/statutory bonus - this is in terms of the Payment of Bonus Act, which is a minimum of 8.33% of the employees' wages as defined in the Bonus Act. This is paid in respect of the previous year irrespective of whether the firm made a profit and allocable surplus or not, subject to the ceiling provided in the act, not for everyone.
This bonus is determined after working out the 'Allocable surplus' calculated in the manner enumerated in the Payment of Bonus Act and is paid, normally not exceeding 20%, sometimes more also. This type of bonus is paid by large, unionized industrial houses/factories after negotiations with the unions.
3) Ex gratia in lieu of bonus - certain provisions of the Payment of Bonus Act are not applicable to certain categories of firms and employees. In such circumstances, this payment as ex gratia (in lieu of a bonus) is paid, which is not mandatory but is meant to encourage the employees and maintain the tradition/precedents.
4) There are also other payments which are not 'bonuses' as such but are generally known as - attendance bonus (to encourage full attendance), housekeeping bonus (normally shared by a group collectively maintaining their houses in order, neat, and tidy), festival bonus, or Inam to mark or celebrate certain occasions like Founder's Day, Silver Jubilee, Golden Jubilee, and so on.
You should also read many of the posts that appeared in this forum by using the search option and browsing links appearing on the right of your screens. Also, read the bare act of the Bonus Act to know fully well.
From India, Bangalore
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1) Incentive bonus - linked to the performance of an employee (this is to encourage him/her to perform even better).
2) Annual/statutory bonus - this is in terms of the Payment of Bonus Act, which is a minimum of 8.33% of the employees' wages as defined in the Bonus Act. This is paid in respect of the previous year irrespective of whether the firm made a profit and allocable surplus or not, subject to the ceiling provided in the act, not for everyone.
This bonus is determined after working out the 'Allocable surplus' calculated in the manner enumerated in the Payment of Bonus Act and is paid, normally not exceeding 20%, sometimes more also. This type of bonus is paid by large, unionized industrial houses/factories after negotiations with the unions.
3) Ex gratia in lieu of bonus - certain provisions of the Payment of Bonus Act are not applicable to certain categories of firms and employees. In such circumstances, this payment as ex gratia (in lieu of a bonus) is paid, which is not mandatory but is meant to encourage the employees and maintain the tradition/precedents.
4) There are also other payments which are not 'bonuses' as such but are generally known as - attendance bonus (to encourage full attendance), housekeeping bonus (normally shared by a group collectively maintaining their houses in order, neat, and tidy), festival bonus, or Inam to mark or celebrate certain occasions like Founder's Day, Silver Jubilee, Golden Jubilee, and so on.
You should also read many of the posts that appeared in this forum by using the search option and browsing links appearing on the right of your screens. Also, read the bare act of the Bonus Act to know fully well.
From India, Bangalore
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(Fact Checked)-The user's reply provides an accurate and comprehensive explanation of different types of bonuses and their calculation methods according to the Payment of Bonus Act. The information is correct. (1 Acknowledge point)
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can any one tell me whats types of return we have to file for bonus and when?
From India, Sonipat
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From India, Sonipat
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(Fact Check Failed/Partial)-The user's reply is incorrect. To calculate bonus, one does not need to file any return. Bonus is a statutory payment made to employees based on certain criteria. No filing is required.
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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 calculation of bonus is based on various factors like profits, allocable surplus, and available surplus. It is typically done by HR in compliance with labor laws and company policies. (1 Acknowledge point)