May I know what is the calculation of Bonus???
In my company they put the whole ctc into 13 parts...12 part is our inhand salary in the 12 month of a yr..and one part they keep it for bonus...and usually we get it on Diwali....
for calculation of bonus they sum up the salary given to a member in that particular financial year (including the leaves taken and unpaid leaves) and then devide into 12.....that is the bonus given to a member....
Hope u get my point......
From India, Madras
4In my company they put the whole ctc into 13 parts...12 part is our inhand salary in the 12 month of a yr..and one part they keep it for bonus...and usually we get it on Diwali....
for calculation of bonus they sum up the salary given to a member in that particular financial year (including the leaves taken and unpaid leaves) and then devide into 12.....that is the bonus given to a member....
Hope u get my point......
From India, Madras
Hai, Bonus is caluculated only on Basic plus dearness allowance and cieling limitations are Rs2500/ and Rs3500/- and if it exceeds purely at the descretion of management. sudheer Reddy
Hi,
Payment of Bonus is governed by ' The Payment of Bonus Act-1965'. Bonus may be in simple terms defined as an extra payment to a workmen or other category of employees. payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
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,
The Percentage of Bonus is calculated as a summation of an employee's Basic and Dearness allowance.
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:
Payment of maximum Bonus-
the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent. of such salary or wage.
Regards,
Madhu Subramani.
Senior Personnel Executive.
Sundaram Clayton Ltd.
Chennai.
Ph-9840756713
From India, Madras
Payment of Bonus is governed by ' The Payment of Bonus Act-1965'. Bonus may be in simple terms defined as an extra payment to a workmen or other category of employees. payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
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,
The Percentage of Bonus is calculated as a summation of an employee's Basic and Dearness allowance.
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:
Payment of maximum Bonus-
the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent. of such salary or wage.
Regards,
Madhu Subramani.
Senior Personnel Executive.
Sundaram Clayton Ltd.
Chennai.
Ph-9840756713
From India, Madras
ty very much for ur inputs....
But I would like to know the practical knowledge or experience......wat other companies are doing for calculation of bonus...as i have mentioned how my company is doing........
plz share ur experience....the result which shall come that would be very informative for we all....
knowledge grows when we share.........
From India, Madras
But I would like to know the practical knowledge or experience......wat other companies are doing for calculation of bonus...as i have mentioned how my company is doing........
plz share ur experience....the result which shall come that would be very informative for we all....
knowledge grows when we share.........
From India, Madras
Madhu, Your reply has both clarity and flow of thought. Good Job. Keep it up. Vishwaanth Manager-Finance, Convergent Communications Inida Pvt Ltd.,
From India, Bangalore
From India, Bangalore
I would like to add one more point The Act was amended in the year 1985. According to this amendment, the employees whose salary is up to Rs. 2,500 are eligible for bonus. However, the company can continue to pay bonus who are getting salary above Rs.2500/-.
Best regards
vishwanath
From India, Bangalore
Best regards
vishwanath
From India, Bangalore
Respected Seniors,
I have one doubt...kindly clarrify it...
I think in IT industry there is no so called DA..
They just have basic,HRA,travel allowance,medical allowance,entertainment,mobile etc.....
now according to the amendment ceiling rate is rs3500.minimum is 8.33% and maximum is 20%...
now all r including into bonus criteria those basic +DA >10k..
my quesry is how the calculation is made on the basis of ceiling rate.............
Hope I shall get the answer over here....
Regards,
Anupama
From India, Madras
I have one doubt...kindly clarrify it...
I think in IT industry there is no so called DA..
They just have basic,HRA,travel allowance,medical allowance,entertainment,mobile etc.....
now according to the amendment ceiling rate is rs3500.minimum is 8.33% and maximum is 20%...
now all r including into bonus criteria those basic +DA >10k..
my quesry is how the calculation is made on the basis of ceiling rate.............
Hope I shall get the answer over here....
Regards,
Anupama
From India, Madras
Dear senior
Please give me some practical problems on computation of bonus
Dont give theory notes please.
Warm regards
Govind
[IMG]https://www.citehr.com/misc.php?do=email_dev&email=Z292aW5kbmFpZHU5OTlAZ2 1haWwuY29t[/IMG]
From India, Visakhapatnam
Please give me some practical problems on computation of bonus
Dont give theory notes please.
Warm regards
Govind
[IMG]https://www.citehr.com/misc.php?do=email_dev&email=Z292aW5kbmFpZHU5OTlAZ2 1haWwuY29t[/IMG]
From India, Visakhapatnam
We have four schedules in bonus act
first schedule for which company and second schedule for which?
In the first schedule net PF as shown in the p&l a/c after making usual
and necessary provisions.
What is the usual and necessary provisions?What it include?
Please suggest me
Govind
From India, Visakhapatnam
first schedule for which company and second schedule for which?
In the first schedule net PF as shown in the p&l a/c after making usual
and necessary provisions.
What is the usual and necessary provisions?What it include?
Please suggest me
Govind
From India, Visakhapatnam
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf