Dear all Seniors
Pls clarify doubt on Bonus act.
1.If employee is on leave e.g Maternity or CL or earned leave then can we count leave days as working days for counted for computation of bonus.
2.Is bonus is calculated on 26 days or 30/31 days.
3.If bonus limit is 10000 Rs (Basic+DA) say then how did we calculated 42000/Rs as a maximum bonus payment limit (What does it means 3500*12=42000).How this 3500 value came?
4.Suppose if employee joined in the month of May2013; is he entitle for bonus in same year 2013 or next year 2014?
Because few organizations is calculating total working days from financial year to financial year E.g. no of days are calculated from April 1st 2012 to 31 march 2013 and the paid bonus based on working day in the 2013. But if employee join after march 2013. Is he entitle bonus in same year.it is a big doubt Pls clarify
Thanks in advance.
Early reply is appreciated.
From India, Mumbai
6Pls clarify doubt on Bonus act.
1.If employee is on leave e.g Maternity or CL or earned leave then can we count leave days as working days for counted for computation of bonus.
2.Is bonus is calculated on 26 days or 30/31 days.
3.If bonus limit is 10000 Rs (Basic+DA) say then how did we calculated 42000/Rs as a maximum bonus payment limit (What does it means 3500*12=42000).How this 3500 value came?
4.Suppose if employee joined in the month of May2013; is he entitle for bonus in same year 2013 or next year 2014?
Because few organizations is calculating total working days from financial year to financial year E.g. no of days are calculated from April 1st 2012 to 31 march 2013 and the paid bonus based on working day in the 2013. But if employee join after march 2013. Is he entitle bonus in same year.it is a big doubt Pls clarify
Thanks in advance.
Early reply is appreciated.
From India, Mumbai
1. Yes, Since these are paid leaves (salary/wages are payable for these absentees), one has to include leave days, and rest days also (Sundays), for bonus calculations.
2. Bonus is calculated for 30/31 days.
3. Whatever may be the gross salary, if anyone’s basic+da is below rs.10000/-, he is eligible for bonus. Also if anyone’s basic+da is more than rs.3500/-, say 6000/-, company has to make calculations, considering minimum rs.3500/-. If basic+da is less than 3500, say 3000, then calculation will be on rs.3000/-.
4. Minimum bonus payable is 8.33% of monthly basic+da, multiplied by number of months. i.e. if basic+da is 6000, and the person has worked for 12 months, in the previous accounting year, then minimum bonus will be 8.33% of 3500 X 12 = rs.3500/-. In short, One Basic+Day is a minimum bonus.
5. It is Management’s decision, to announce more bonus, either by increasing percentage, say 12 percent, or increase limit of basic+day. E.g. 8.33% on rs.5000 x 12…etc.
6. Employee joined in May 2013 is not eligible for bonus, since bonus is related to previous year’s profitability, and previous year’s basic+da. Looking at festive mood of employees, Management gives some payments to new joinees also, but it is called ex-gratia, and not bonus. Even if any employee joines on 1st March 2013, he should be paid bonus for one month.
Hope, I have clarified most of the points. Experts can correct me, if any discrepancies are noticed.
From India, Mumbai
2. Bonus is calculated for 30/31 days.
3. Whatever may be the gross salary, if anyone’s basic+da is below rs.10000/-, he is eligible for bonus. Also if anyone’s basic+da is more than rs.3500/-, say 6000/-, company has to make calculations, considering minimum rs.3500/-. If basic+da is less than 3500, say 3000, then calculation will be on rs.3000/-.
4. Minimum bonus payable is 8.33% of monthly basic+da, multiplied by number of months. i.e. if basic+da is 6000, and the person has worked for 12 months, in the previous accounting year, then minimum bonus will be 8.33% of 3500 X 12 = rs.3500/-. In short, One Basic+Day is a minimum bonus.
5. It is Management’s decision, to announce more bonus, either by increasing percentage, say 12 percent, or increase limit of basic+day. E.g. 8.33% on rs.5000 x 12…etc.
6. Employee joined in May 2013 is not eligible for bonus, since bonus is related to previous year’s profitability, and previous year’s basic+da. Looking at festive mood of employees, Management gives some payments to new joinees also, but it is called ex-gratia, and not bonus. Even if any employee joines on 1st March 2013, he should be paid bonus for one month.
Hope, I have clarified most of the points. Experts can correct me, if any discrepancies are noticed.
From India, Mumbai
Dear Dev83_hr... thanks for your good words. What is PMS ?.. I would like to clear one thing.. I am not HR person, but take much much interest to understand HR things. Shall cooperate in all circumstances. Thanks once again.
From India, Mumbai
From India, Mumbai
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