NAV' A mutual fund’s price per share or exchange-traded fund’s (ETF) per-
From India, Delhi
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1From India, Delhi
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Case 1 - If an employee's basic salary is Rs. 4000 and gross is Rs. 7000, will the bonus be calculated on Rs. 4000 or Rs. 7000?
Bonus will be calculated on Rs. 4000.
Case 2 - If an employee's basic salary is Rs. 5600 and gross is Rs. 11000, will the bonus be calculated on Rs. 5600 or Rs. 7000?
Bonus will be calculated on Rs. 5600.
Case 3 - If an employee's basic salary is Rs. 6995 and gross is Rs. 13600, will the bonus be calculated on Rs. 6995 or Rs. 7000?
Bonus will be calculated on Rs. 6995.
Case 4 - If an employee's basic salary is Rs. 11800 and gross is Rs. 21000, does this employee come under the purview of the Bonus Act?
He will come under the Payment of Bonus Act. (Because for the calculation of the bonus, if only the basic salary is considered, the same basic salary alone would qualify for deciding the eligibility of an employee to receive a bonus.)
Case 5 - If an employee's basic salary is Rs. 12000 and gross is Rs. 21200, does this employee come under the purview of the Bonus Act?
Same as in Case 4.
Case 6 - If an employee's basic salary is Rs. 21000 and gross is Rs. 32000, does this employee come under the Bonus Act or not? If yes, what amount of bonus will be calculated?
He will come under the coverage of the Bonus Act because his basic salary is not more than Rs. 21000. According to the Payment of Bonus Act, an employee means any person employed on wages not exceeding Rs. 21000. Therefore, if his basic salary is 21001, then he will be out of the bonus coverage.
In the case of an employee whose salary is more than 7000, say Rs. 12000, his bonus will be calculated as if his salary is only Rs. 7000. At the same time, if he is employed in an industry for which the minimum wage has been notified by the government, then that statutory wage will be considered for deciding the bonus-qualifying salary. Accordingly, if the notified minimum wage is more than 7000, then that will be taken as the bonus-qualifying salary. Following the same example, if the minimum wage is Rs. 9000, then that wage will be the base for bonus calculation. Obviously, if the minimum wage is less than 7000, say, 6800, but the actual basic wage is 12000, then the bonus will be calculated considering that his wage is Rs. 7000 only.
Madhu.T.K
From India, Kannur
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Bonus will be calculated on Rs. 4000.
Case 2 - If an employee's basic salary is Rs. 5600 and gross is Rs. 11000, will the bonus be calculated on Rs. 5600 or Rs. 7000?
Bonus will be calculated on Rs. 5600.
Case 3 - If an employee's basic salary is Rs. 6995 and gross is Rs. 13600, will the bonus be calculated on Rs. 6995 or Rs. 7000?
Bonus will be calculated on Rs. 6995.
Case 4 - If an employee's basic salary is Rs. 11800 and gross is Rs. 21000, does this employee come under the purview of the Bonus Act?
He will come under the Payment of Bonus Act. (Because for the calculation of the bonus, if only the basic salary is considered, the same basic salary alone would qualify for deciding the eligibility of an employee to receive a bonus.)
Case 5 - If an employee's basic salary is Rs. 12000 and gross is Rs. 21200, does this employee come under the purview of the Bonus Act?
Same as in Case 4.
Case 6 - If an employee's basic salary is Rs. 21000 and gross is Rs. 32000, does this employee come under the Bonus Act or not? If yes, what amount of bonus will be calculated?
He will come under the coverage of the Bonus Act because his basic salary is not more than Rs. 21000. According to the Payment of Bonus Act, an employee means any person employed on wages not exceeding Rs. 21000. Therefore, if his basic salary is 21001, then he will be out of the bonus coverage.
In the case of an employee whose salary is more than 7000, say Rs. 12000, his bonus will be calculated as if his salary is only Rs. 7000. At the same time, if he is employed in an industry for which the minimum wage has been notified by the government, then that statutory wage will be considered for deciding the bonus-qualifying salary. Accordingly, if the notified minimum wage is more than 7000, then that will be taken as the bonus-qualifying salary. Following the same example, if the minimum wage is Rs. 9000, then that wage will be the base for bonus calculation. Obviously, if the minimum wage is less than 7000, say, 6800, but the actual basic wage is 12000, then the bonus will be calculated considering that his wage is Rs. 7000 only.
Madhu.T.K
From India, Kannur
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hi all
i have a query in this whole concept on the calculation of wages as the definition of wages as defined under the Bonus Act says " salary or wage” means all remuneration (other than remuneration in
respect of over-time work) capable of being expressed in terms of money,
which would, if the terms of employment, express or implied, were
fulfilled, be payable to an employee in respect of his employment or of
work done in such employment and includes dearness allowance (that is
to say, all cash payments, by whatever name called, paid to an employee
on account of a rise in the cost of living), but does not include—
(i) any other allowance which the employee is for the time being entitled
to;
(ii) the value of any house accommodation or of supply of light, water,
medical attendance or other amenity or of any service or of any
concessional supply of foodgrains or other articles;
(iii) any travelling concession;
(iv) any bonus (including incentive, production and attendance bonus);
(v) any contribution paid or payable by the employer to any pension fund
or provident fund or for the benefit of the employee under any law for
the time being in force;
(vi) any retrenchment compensation or any gratuity or other retirement
benefit payable to the employee or any ex gratia payment made to
him;
(vii) any commission payable to the employee.
As per this in a private company there are heads which complete a gross salary like basic, hra, conveyance allowance , education allowance , hostel allowance and special allowance. please clarify how do we need to calculate then ,
From India, Delhi
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i have a query in this whole concept on the calculation of wages as the definition of wages as defined under the Bonus Act says " salary or wage” means all remuneration (other than remuneration in
respect of over-time work) capable of being expressed in terms of money,
which would, if the terms of employment, express or implied, were
fulfilled, be payable to an employee in respect of his employment or of
work done in such employment and includes dearness allowance (that is
to say, all cash payments, by whatever name called, paid to an employee
on account of a rise in the cost of living), but does not include—
(i) any other allowance which the employee is for the time being entitled
to;
(ii) the value of any house accommodation or of supply of light, water,
medical attendance or other amenity or of any service or of any
concessional supply of foodgrains or other articles;
(iii) any travelling concession;
(iv) any bonus (including incentive, production and attendance bonus);
(v) any contribution paid or payable by the employer to any pension fund
or provident fund or for the benefit of the employee under any law for
the time being in force;
(vi) any retrenchment compensation or any gratuity or other retirement
benefit payable to the employee or any ex gratia payment made to
him;
(vii) any commission payable to the employee.
As per this in a private company there are heads which complete a gross salary like basic, hra, conveyance allowance , education allowance , hostel allowance and special allowance. please clarify how do we need to calculate then ,
From India, Delhi
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Wages/salary mean basic salary and dearness allowance. HRA is also a part of the salary if the same is paid as per agreement or settlement. In private establishments, there has been a practice of fixing a lump sum amount as salary and then dividing it into small particles under different heads, like Basic, HRA, Conveyance, etc. In such a situation, the sum total is the amount of remuneration agreed upon and that will qualify for a bonus.
In a structured pay scale, there will be a basic pay scale, and all other allowances will be fixed or even variable according to grades. In such a situation, the allowances other than dearness allowance will qualify for a bonus. This is the treatment concerning layoff compensation, gratuity, retrenchment compensation, or wherever reference to wages is made.
Madhu.T.K
From India, Kannur
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In a structured pay scale, there will be a basic pay scale, and all other allowances will be fixed or even variable according to grades. In such a situation, the allowances other than dearness allowance will qualify for a bonus. This is the treatment concerning layoff compensation, gratuity, retrenchment compensation, or wherever reference to wages is made.
Madhu.T.K
From India, Kannur
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Thank you, Madhu, for the response. This means that we will calculate the bonus based on the gross salary since we declare all the components of the salary in the appointment letter. We only need to exclude the PF. Also, please clarify if the HRA should be included as, in all other compliances like PF, it is not included.
From India, Delhi
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From India, Delhi
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If HRA is a part of the salary, then it should also be considered. As already pointed out, under normal circumstances, only Basic salary and DA will qualify for a bonus. If these are considered for the calculation of the bonus, then only these two components should be considered for deciding whether an employee is eligible for a bonus or not. Therefore, if you pay a bonus only on Basic (+ DA, if any), then an employee whose basic (+DA) salary is not more than 21000 will be entitled to a bonus even though his gross salary is more than 21000. At the same time, if you give a bonus on a salary that includes basic, HRA, etc., then for deciding eligibility, you can also include all these components.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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Dear All
Kindly find the below Bonus Amendment it has mentioned that 7000 or mini wages whichever is higher not less
1. (1) This Act may be called the Payment of Bonus (Amendment) Act, 2015.
(2) It shall be deemed to have come into force on the 1st day of April, 2014.
2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the
principal Act), in clause (13), for the words ten thousand rupees, the words twenty-one
thousand rupees shall be substituted.
(i) for the words three thousand and five hundred rupees at both the places
where they occur, the words seven thousand rupees or the minimum wage for the
scheduled employment, as fixed by the appropriate Government, whichever is higher
shall respectively be substituted;
From India, Mumbai
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Kindly find the below Bonus Amendment it has mentioned that 7000 or mini wages whichever is higher not less
1. (1) This Act may be called the Payment of Bonus (Amendment) Act, 2015.
(2) It shall be deemed to have come into force on the 1st day of April, 2014.
2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the
principal Act), in clause (13), for the words ten thousand rupees, the words twenty-one
thousand rupees shall be substituted.
(i) for the words three thousand and five hundred rupees at both the places
where they occur, the words seven thousand rupees or the minimum wage for the
scheduled employment, as fixed by the appropriate Government, whichever is higher
shall respectively be substituted;
From India, Mumbai
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Dear All,
Kindly let us know if the below Bonus Working is correct or incorrect:
Sr. No. Case Bonus Calculation Amt
1 If Gross Salary is Less than 7000 or 10000 (Minimum Wages) 7000
2 If Gross Salary is More than 7000 and Less than 10000 (Minimum Wages) Minimum Wages
3 If Gross Salary is More than 10000 (Minimum Wages) Minimum Wages
Thanks and Regards
From India, Mumbai
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Kindly let us know if the below Bonus Working is correct or incorrect:
Sr. No. Case Bonus Calculation Amt
1 If Gross Salary is Less than 7000 or 10000 (Minimum Wages) 7000
2 If Gross Salary is More than 7000 and Less than 10000 (Minimum Wages) Minimum Wages
3 If Gross Salary is More than 10000 (Minimum Wages) Minimum Wages
Thanks and Regards
From India, Mumbai
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1. If the minimum wage (basic+DA) is Rs. 333 per day, and the present full month has 26 days, then the wages will amount to Rs. 8658. Therefore, the bonus will be calculated on Rs. 8658.
2. If there is absenteeism in a certain month, with 24 working days, the wages will amount to Rs. 7992. The bonus will be calculated based on Rs. 7992 or Rs. 7000.
3. In the case of absenteeism in a certain month, with 12 working days, the wages will amount to Rs. 3996. The bonus will be calculated based on Rs. 3996 or Rs. 7000.
Please clarify.
Regards,
rkn
From India, Kolkata
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2. If there is absenteeism in a certain month, with 24 working days, the wages will amount to Rs. 7992. The bonus will be calculated based on Rs. 7992 or Rs. 7000.
3. In the case of absenteeism in a certain month, with 12 working days, the wages will amount to Rs. 3996. The bonus will be calculated based on Rs. 3996 or Rs. 7000.
Please clarify.
Regards,
rkn
From India, Kolkata
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