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Dear Friend Amit,
thanks for the file but you have calculated on minimum amount of Rs 7000 whereas it has to be calculated between Rs 7000 or minimum grade which ever is on higher side, the minimum grade is on higher so please check and if I am wrong please correct me.
Thanks
From India, New Delhi
thanks for the file but you have calculated on minimum amount of Rs 7000 whereas it has to be calculated between Rs 7000 or minimum grade which ever is on higher side, the minimum grade is on higher so please check and if I am wrong please correct me.
Thanks
From India, New Delhi
If 8.33% of eligible salary exceeds Rs.7000 per year, then the statutory bonus limited to Rs.7000 or Rs.583 per month. Please read the bonus applicability.
From India, Delhi
From India, Delhi
Dear Amit Aishwarys, your statement that Statutory Bonus limited to Rs7,000/- is not correct.please read the act once again.
Bonus at the rate of 8.33% for wages up to Rs7,000/- will be Rs7,000
Bonus at the rate of 8.33% for wages up to Rs10,000 will be Rs10,000/-
From India, New Delhi
Bonus at the rate of 8.33% for wages up to Rs7,000/- will be Rs7,000
Bonus at the rate of 8.33% for wages up to Rs10,000 will be Rs10,000/-
From India, New Delhi
Dear Srinath Ji,
Have you ever think what is the Capping amount of Bonus? If no, then please refer the description given below-
For the payout of bonus, capping is at 7000/-.
Every employee should get minimum of 8.33% of wages capped at Rs 7,000/- even if there is loss and maximum of 20% of wages capped at Rs 7,000/- in an accounting year.
Many company follow the practise of paying bonus on monthly basis, some pay minimum 8.33% of Rs 7.000 i.e Rs 583/- or some 20% of Rs 7,000/- i.e Rs 1,400/- per month.
Capping of Rs 7000/- means even if an employee is falling under Bonus (Basic is less than or equal to 21000), he will be paid bonus on maximum Rs 7000/-.
## Employer can calculate Bonus on the Capping amount.
For an example if an employee basic salary is 12000 Rs ( here we will take 7000 Rs only as bonus salary) and he works for 12 months in a financial year then the bonus amount he will get in that year will be calculated like this :
Bonus Calculation = (Basic Salary + DA) x Number Of Months Worked x 8.33%
= 7000 x 12 x 8.33% = Rs.6997
I know that as per The Bonus Amendment Act'2015 -An employee who is drawing salary or wages between Rs.7000/-per month and Rs.21000/-per month the bonus payable to him is to be calculated on Rs.7000 or whichever is higher. But Its depends on Company policy .
I am not saying that your statement is wrong but my statement is also not wrong.
Please refer the attachment .
Regards,
Amit
From India, Delhi
Have you ever think what is the Capping amount of Bonus? If no, then please refer the description given below-
For the payout of bonus, capping is at 7000/-.
Every employee should get minimum of 8.33% of wages capped at Rs 7,000/- even if there is loss and maximum of 20% of wages capped at Rs 7,000/- in an accounting year.
Many company follow the practise of paying bonus on monthly basis, some pay minimum 8.33% of Rs 7.000 i.e Rs 583/- or some 20% of Rs 7,000/- i.e Rs 1,400/- per month.
Capping of Rs 7000/- means even if an employee is falling under Bonus (Basic is less than or equal to 21000), he will be paid bonus on maximum Rs 7000/-.
## Employer can calculate Bonus on the Capping amount.
For an example if an employee basic salary is 12000 Rs ( here we will take 7000 Rs only as bonus salary) and he works for 12 months in a financial year then the bonus amount he will get in that year will be calculated like this :
Bonus Calculation = (Basic Salary + DA) x Number Of Months Worked x 8.33%
= 7000 x 12 x 8.33% = Rs.6997
I know that as per The Bonus Amendment Act'2015 -An employee who is drawing salary or wages between Rs.7000/-per month and Rs.21000/-per month the bonus payable to him is to be calculated on Rs.7000 or whichever is higher. But Its depends on Company policy .
I am not saying that your statement is wrong but my statement is also not wrong.
Please refer the attachment .
Regards,
Amit
From India, Delhi
Dear All,
If u read Bonus act (Amended) there is very clear:
Eligibility if Basic <=21000/-
Maximum limit of bonus is 7000/- or minimum wages whichever is more.
Suppose basic+DA is 6000/- per month then bonus will be Rs. 7000/- Statutery
If Basic+DA is Rs.10000/- per month then bonus will be = to minimum wages or 7000/- whichever is more.
If basic+DA is more than 21000/- than no any bonus eligibility.
From India, Pune
If u read Bonus act (Amended) there is very clear:
Eligibility if Basic <=21000/-
Maximum limit of bonus is 7000/- or minimum wages whichever is more.
Suppose basic+DA is 6000/- per month then bonus will be Rs. 7000/- Statutery
If Basic+DA is Rs.10000/- per month then bonus will be = to minimum wages or 7000/- whichever is more.
If basic+DA is more than 21000/- than no any bonus eligibility.
From India, Pune
Dear Mr Amit, Please note that your statement that "But Its depends on Company policy " does not apply for Statutory matters.Your Company Policy should be in conformity with statutory requirement i.e The Payment of Bonus act, 1965.The Calculation of Bonus should be on Rs7,000/- or applicable Minimum Wages, whichever is higher for the Financial Year 2016-17
You may check applicable Minimum Wages for the FY 2016-17 wherein you will find that Minimum wages is more than Rs7,000/-
Hope this clarification will suffice.When we discuss about statutory matters, Company Policy should not be mixed up.If Company Policy is less than Statutory requirement, law will prevail over Policy
From India, New Delhi
You may check applicable Minimum Wages for the FY 2016-17 wherein you will find that Minimum wages is more than Rs7,000/-
Hope this clarification will suffice.When we discuss about statutory matters, Company Policy should not be mixed up.If Company Policy is less than Statutory requirement, law will prevail over Policy
From India, New Delhi
Dear Mr. Mishra,
It would be really helpful if you can share the exact clause in the act where it is mentioned that an employee is eligible for bonus payment when his basic + dearness allowance is less than 21,000. I have understood the bonus act in a different way which I am sharing below. If you can correct me, it would be really helpful.
According to me, the bonus eligibility is calculated on the basis of earnings other than few allowances of the same category such as over time allowance, incentive etc.
But payment of bonus is based on basic + dearness allowance only. For bonus calculation, only basic and dearness allowance would be required.
Please help me understand the same better by quoting the clause in the bonus act where it is mentioned that employee whose basic + dearness allowance if lesser than 21K should be paid bonus as per the statutory norms.
Thanks in advance.
Syam
From India, Bengaluru
It would be really helpful if you can share the exact clause in the act where it is mentioned that an employee is eligible for bonus payment when his basic + dearness allowance is less than 21,000. I have understood the bonus act in a different way which I am sharing below. If you can correct me, it would be really helpful.
According to me, the bonus eligibility is calculated on the basis of earnings other than few allowances of the same category such as over time allowance, incentive etc.
But payment of bonus is based on basic + dearness allowance only. For bonus calculation, only basic and dearness allowance would be required.
Please help me understand the same better by quoting the clause in the bonus act where it is mentioned that employee whose basic + dearness allowance if lesser than 21K should be paid bonus as per the statutory norms.
Thanks in advance.
Syam
From India, Bengaluru
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Bonus Calculation Sheet-2016-17-R ev..xls