My basic salary is Rs.7200/- but bonus is just Rs. 3500/-. Is it correct as per your calculations? Please enlighten. My gross salary is Rs. 18035/- but bonus how is it calculated. If mit is not correct where to aopproach because there is no reply from management when asked.This is an example of reputed pharmaceutical company.
From India, Kanpur
From India, Kanpur
Dear Mr. Kanpur Feedback,
As per the Payment of Bonus Act, 1965, Bonus is payable to those employees whose salaries per month do not exceed Rs 10000 per mensem. Salary that falls between Rs 3500 and Rs 10000, bonus will be calculated treating the salary as Rs 3500.
The statutory minimum bonus payable is 8.33% and 20% is the maximum bonus. The rate of bonus will depend upon the profit available to the company on the same.
If 10% has been agreed then take the Basic + DA salary of individual employee for the year and then take 10% of it to arrive at the amount that should be given as bonus. Please do not count by taking one month salary and multiply it by 12 months as there may be months with lesser salary due to leaves. Those whose basic pay is more than 3500 but not more than Rs 10000, the bonus can becalculated as if the monthly salary is Rs 3500 (Basic + DA). Henceforth, in practical cases where the trade unions negotiate the best of reasonal percentage to the company will be declared.
As per your case, (Basic Salary + D.A) x No. of months during the FY x Percentage agreed.
Therefore, 3500*12*8.33 = 3498.6 (3500)
From India, Visakhapatnam
990As per the Payment of Bonus Act, 1965, Bonus is payable to those employees whose salaries per month do not exceed Rs 10000 per mensem. Salary that falls between Rs 3500 and Rs 10000, bonus will be calculated treating the salary as Rs 3500.
The statutory minimum bonus payable is 8.33% and 20% is the maximum bonus. The rate of bonus will depend upon the profit available to the company on the same.
If 10% has been agreed then take the Basic + DA salary of individual employee for the year and then take 10% of it to arrive at the amount that should be given as bonus. Please do not count by taking one month salary and multiply it by 12 months as there may be months with lesser salary due to leaves. Those whose basic pay is more than 3500 but not more than Rs 10000, the bonus can becalculated as if the monthly salary is Rs 3500 (Basic + DA). Henceforth, in practical cases where the trade unions negotiate the best of reasonal percentage to the company will be declared.
As per your case, (Basic Salary + D.A) x No. of months during the FY x Percentage agreed.
Therefore, 3500*12*8.33 = 3498.6 (3500)
From India, Visakhapatnam
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