Dear all,
Our company has declared a bonus of 16%. So, how do I calculate the bonus for a person drawing a monthly salary of Rs. 5000?
Will it be 5000*12*16% = Rs. 9600 (so a maximum of Rs. 8400 to be paid) or 3500*12*16% = Rs. 6720 (Rs. 3500 max salary limit)?
Please advise at the earliest.
Regards,
Athif
From India, Madras
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11Our company has declared a bonus of 16%. So, how do I calculate the bonus for a person drawing a monthly salary of Rs. 5000?
Will it be 5000*12*16% = Rs. 9600 (so a maximum of Rs. 8400 to be paid) or 3500*12*16% = Rs. 6720 (Rs. 3500 max salary limit)?
Please advise at the earliest.
Regards,
Athif
From India, Madras
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Our company has declared a bonus of 16%. So how do I calculate the bonus for a person drawing a monthly salary of Rs. 5000? Will it be 5000*12*16% = Rs. 9600 (so a maximum of Rs. 8400 to be paid) or 3500*12*16% = Rs. 6720 (Rs. 3500 max salary limit)? Please advise at the earliest.
Anand B
From India, New Delhi
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Anand B
From India, New Delhi
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Dear Gaurav,
Please read the email from Jagan and Ravi. All details related to the bonus have been clearly explained by him. If any employee is absent (LWP), you can deduct the LWP amount from their bonus. The calculation will depend on the minimum/maximum bonus.
Regards,
Arun
09935098288
From India, Delhi
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Please read the email from Jagan and Ravi. All details related to the bonus have been clearly explained by him. If any employee is absent (LWP), you can deduct the LWP amount from their bonus. The calculation will depend on the minimum/maximum bonus.
Regards,
Arun
09935098288
From India, Delhi
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Bonus calculations are based on the salary for the month, i.e., from April to March (calendar year), we should calculate 8.33% of wages for each month specifically, not on the annual salary. For example, if an employee's salary for a month is Rs. 10,000 in August, and they receive an annual increment of Rs. 500 in September, then they are not eligible to receive a bonus for the month of September.
Like wise.
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Like wise.
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Hi Samvedan,
I need your help. I am working with an Indian company and currently under notice period. I am getting relieved on February 27, 2009. My bonus component was due in March's appraisal. I want to know if, having worked for the past 11 months, I am eligible to receive a bonus on a pro-rata basis. I am willing to wait until the end of March or April for the company to disperse the same. Kindly help ASAP!
Regards,
Anshu
From India, Bangalore
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I need your help. I am working with an Indian company and currently under notice period. I am getting relieved on February 27, 2009. My bonus component was due in March's appraisal. I want to know if, having worked for the past 11 months, I am eligible to receive a bonus on a pro-rata basis. I am willing to wait until the end of March or April for the company to disperse the same. Kindly help ASAP!
Regards,
Anshu
From India, Bangalore
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This is for Anshoog and other interested members!
To be eligible to receive Bonus under the Act:
1. You have to be a covered employee. (In case of doubt, read this thread from the beginning.)
2. You have to have worked for at least 30 days in the aggregate during the financial year.
3. The Bonus under the act has nothing to do with your appraisals. Only non-statutory bonus may be linked to performance and therefore to the reviews!
4. The process that leads to the declaration of bonus under the act goes as follows:
After the close of the financial year, the company accounts are finalized. Simultaneously, Bonus is determined by following a method prescribed under the Payment of Bonus Act - mostly done by the company CA or the Finance Department.
Bonus is always a derived figure and depends upon the calculation of Allocable Surplus, Available Surplus, and after taking into account the Set On and the Set Off position prescribed under the act.
Because the process of finalization of accounts, the statutory audit, calculation of bonus under the act, etc. take time, the law has stipulated EIGHT months from the close of the financial year (i.e. up to the end of November) for the payment of statutory bonus.
Since Anshoog will be working right up to the end of February 09, assuming that she is a covered employee as far as the Payment of Bonus Act 1965 is considered, she HAS to get declared bonus pro-rated to the number of days she was in employment with this particular company.
Having provided the basic information, permit me to add a few observations. Very few employers meticulously adhere to the law. Often the employees who are not covered under the act are also paid derived bonus under the act but it is called by various names like, "ex-gratia", "performance bonus", etc. These are NOT to be confused with or as Bonus under the act.
Many times one finds that Bonus is paid even at 20%, but being the maximum payable bonus, no one complains, yet the law may have been ignored!
I suppose you have got your answers. If there are more questions, you are welcome.
Regards,
samvedan
February 10, 2009
From India, Pune
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To be eligible to receive Bonus under the Act:
1. You have to be a covered employee. (In case of doubt, read this thread from the beginning.)
2. You have to have worked for at least 30 days in the aggregate during the financial year.
3. The Bonus under the act has nothing to do with your appraisals. Only non-statutory bonus may be linked to performance and therefore to the reviews!
4. The process that leads to the declaration of bonus under the act goes as follows:
After the close of the financial year, the company accounts are finalized. Simultaneously, Bonus is determined by following a method prescribed under the Payment of Bonus Act - mostly done by the company CA or the Finance Department.
Bonus is always a derived figure and depends upon the calculation of Allocable Surplus, Available Surplus, and after taking into account the Set On and the Set Off position prescribed under the act.
Because the process of finalization of accounts, the statutory audit, calculation of bonus under the act, etc. take time, the law has stipulated EIGHT months from the close of the financial year (i.e. up to the end of November) for the payment of statutory bonus.
Since Anshoog will be working right up to the end of February 09, assuming that she is a covered employee as far as the Payment of Bonus Act 1965 is considered, she HAS to get declared bonus pro-rated to the number of days she was in employment with this particular company.
Having provided the basic information, permit me to add a few observations. Very few employers meticulously adhere to the law. Often the employees who are not covered under the act are also paid derived bonus under the act but it is called by various names like, "ex-gratia", "performance bonus", etc. These are NOT to be confused with or as Bonus under the act.
Many times one finds that Bonus is paid even at 20%, but being the maximum payable bonus, no one complains, yet the law may have been ignored!
I suppose you have got your answers. If there are more questions, you are welcome.
Regards,
samvedan
February 10, 2009
From India, Pune
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mmm.. its realy good to c.. every body here helping the people..nice to c this.. i just make my new loging 2day n become happy to part of u all guys.. I m also from HR since last 10 years
From India, Pune
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From India, Pune
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Hi Samvedan,
Thank you for your prompt response! Much appreciated!
I have a few clarifications/questions. Mine is a non-statutory bonus component. I know this is performance-based and is linked with the appraisal. My performance had been "Exceed" in the last year, and I have contributed to the business as well. However, since I will not be available in March for the appraisal, I will lose this entire money which I actually deserved.
Is there any law by which I can claim this amount or at least a percentage of it from my existing company (on a pro-rata basis or otherwise)?
Kindly help as soon as possible.
Regards,
Anshu
From India, Bangalore
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Thank you for your prompt response! Much appreciated!
I have a few clarifications/questions. Mine is a non-statutory bonus component. I know this is performance-based and is linked with the appraisal. My performance had been "Exceed" in the last year, and I have contributed to the business as well. However, since I will not be available in March for the appraisal, I will lose this entire money which I actually deserved.
Is there any law by which I can claim this amount or at least a percentage of it from my existing company (on a pro-rata basis or otherwise)?
Kindly help as soon as possible.
Regards,
Anshu
From India, Bangalore
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Thanks, Samvedan, for your prompt response! Much appreciated!
I have a few clarifications/questions. Mine is a non-statutory bonus component. I know this is performance-based and is linked with appraisal. My performance had been "Exceed" in the last year and has contributed to the business as well. But since I will not be available in March for the appraisal, I will lose this entire money which actually I deserved.
Is there any law by which I can claim this amount or at least a percentage of it from my existing company (on a pro-rata basis or otherwise)? Kindly help as soon as possible.
Regards, Anshu
From India, Bangalore
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I have a few clarifications/questions. Mine is a non-statutory bonus component. I know this is performance-based and is linked with appraisal. My performance had been "Exceed" in the last year and has contributed to the business as well. But since I will not be available in March for the appraisal, I will lose this entire money which actually I deserved.
Is there any law by which I can claim this amount or at least a percentage of it from my existing company (on a pro-rata basis or otherwise)? Kindly help as soon as possible.
Regards, Anshu
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From India, Bangalore
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