Dear Shilpa, Shakila & Shrihari Rao,
If you have no clear knowledge, please do not misguide the others.
From the financial year 2006-07 onwards the salary ceiling limit for bonus coverage is Rs. 10,000 and the ceiling limit for calculation of bonus payment is Rs. 3,500.
Dear Spreethik,
For bonus calculation first you have to arrive available surplus. To arrive this you have to deduct depreciation, tax, developmental rebate etc. from the gross profit. (It will be better to consult an expert in this regard). Find allocable surplus which is equal to 60% of available surplus, in case of Banking Organisations. But for Companies, this is 67%.
Distibute this amount among the employees subject to a lower ceiling of 8.33% and an upper ceiling of 20%. Even though the actual falls below / beyond these limits, payment of Bonus should be restricted as stated above. If it is below 8.33%, the balance can be adjusted from the preceeding 4 years, which is called Set Off. If it is above 20%, the excess upto another 20% can be carried forward to the preceeding 4 years, called Set On. After 4 years both Set Off and Set On will be lapsed.
Dear Anitha Elizabeth,
In the above case, salary is Rs. 17,280. Bonus is statutory only upto a salary of Rs. 10,000. But employer can pay exgratia according to company policy.
Abbas.P.S
From India, Bangalore
517If you have no clear knowledge, please do not misguide the others.
From the financial year 2006-07 onwards the salary ceiling limit for bonus coverage is Rs. 10,000 and the ceiling limit for calculation of bonus payment is Rs. 3,500.
Dear Spreethik,
For bonus calculation first you have to arrive available surplus. To arrive this you have to deduct depreciation, tax, developmental rebate etc. from the gross profit. (It will be better to consult an expert in this regard). Find allocable surplus which is equal to 60% of available surplus, in case of Banking Organisations. But for Companies, this is 67%.
Distibute this amount among the employees subject to a lower ceiling of 8.33% and an upper ceiling of 20%. Even though the actual falls below / beyond these limits, payment of Bonus should be restricted as stated above. If it is below 8.33%, the balance can be adjusted from the preceeding 4 years, which is called Set Off. If it is above 20%, the excess upto another 20% can be carried forward to the preceeding 4 years, called Set On. After 4 years both Set Off and Set On will be lapsed.
Dear Anitha Elizabeth,
In the above case, salary is Rs. 17,280. Bonus is statutory only upto a salary of Rs. 10,000. But employer can pay exgratia according to company policy.
Abbas.P.S
From India, Bangalore
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