Dear Friends,
Can you please clarify me about Bonus calculations;
1. What is the minimum salary for bonus eligibility
2. What is the Maximum limit for bonus eligibility
3. what are all emoluments considered for Bonus eligibility calculations.
4. What is the difference between Bonus and EX-Gratia
5. What is the statutory presentage of bonus to be given?
6. Any other details can be useful to me regarding bonus. please post
Thanks
Senthil D.
From India, Hyderabad
7Can you please clarify me about Bonus calculations;
1. What is the minimum salary for bonus eligibility
2. What is the Maximum limit for bonus eligibility
3. what are all emoluments considered for Bonus eligibility calculations.
4. What is the difference between Bonus and EX-Gratia
5. What is the statutory presentage of bonus to be given?
6. Any other details can be useful to me regarding bonus. please post
Thanks
Senthil D.
From India, Hyderabad
Dear Senthil,
1.There is no minimum salary for Bonus. But minimum payment for 1 year is Rs. 100
2. For Bonus coverage, maximum monthly salary is Rs. 10,000.
3. Mainly Basic+Da is taking as salary.
4. Allocable surplus has to be distributed among the eligible employees. The lower ceiling is 8.33% and upper ceiling is 20%. This is statutory and called Bonus payment. If the employer give additional payment other than statutory or payment to employees above the coverage limit, it may be called as ex-gratia. Please note that Bonus is mandatory and ex-gratia is optional.
5. Statutory percentage is from 8.33% to 20%, detailed in answer number 4
6. Allocable surplus is 60% of available surplus, for Banking institutions. For companies it will be 67%. 8.33% is the percentage form of 1/12 & is equal to one month salary (for one year). Accordingly 20% is 2.4 month salary.
If the allocable surplus is not sufficient to pay 8.33%, balance amount is to be adjusted from the next four years, which is called as Set Off. And if the allocable surplus is more than sufficient to pay 20%, balance amount is to be carried forward for the next four years, which is called as Set On.
Abbas.P.S
From India, Bangalore
1.There is no minimum salary for Bonus. But minimum payment for 1 year is Rs. 100
2. For Bonus coverage, maximum monthly salary is Rs. 10,000.
3. Mainly Basic+Da is taking as salary.
4. Allocable surplus has to be distributed among the eligible employees. The lower ceiling is 8.33% and upper ceiling is 20%. This is statutory and called Bonus payment. If the employer give additional payment other than statutory or payment to employees above the coverage limit, it may be called as ex-gratia. Please note that Bonus is mandatory and ex-gratia is optional.
5. Statutory percentage is from 8.33% to 20%, detailed in answer number 4
6. Allocable surplus is 60% of available surplus, for Banking institutions. For companies it will be 67%. 8.33% is the percentage form of 1/12 & is equal to one month salary (for one year). Accordingly 20% is 2.4 month salary.
If the allocable surplus is not sufficient to pay 8.33%, balance amount is to be adjusted from the next four years, which is called as Set Off. And if the allocable surplus is more than sufficient to pay 20%, balance amount is to be carried forward for the next four years, which is called as Set On.
Abbas.P.S
From India, Bangalore
Dear Mr. Abbas,
Thanks you very much for your eply. It is cleared my long time doubs....
Usually i will get alert in my mail ID if anyone replied to my question in Cite HR but this your reply alert i dnt get. Do u have any idea about this please let me know how to enable this facility. senthil@indimmune.com
Thanks
Senthil D.
From India, Hyderabad
Thanks you very much for your eply. It is cleared my long time doubs....
Usually i will get alert in my mail ID if anyone replied to my question in Cite HR but this your reply alert i dnt get. Do u have any idea about this please let me know how to enable this facility. senthil@indimmune.com
Thanks
Senthil D.
From India, Hyderabad
The statutory limit for computation of bonus maximum salary is to be considered as Rs. 3500/- i.e. ceiling for calculation of bonus. For example any body drawing salary more than Rs. 3500/- his salary for calculation of bonus will be considered as Rs. 3500.
Regards
Rajendra Bhavsar
From India, Mumbai
Regards
Rajendra Bhavsar
From India, Mumbai
Dear Senthil,
1. There is no minimum salary limit for bonus eligibility.
2.The maximum salary limit is Rs.10000/-
3. Basic + DA is considered for computing Bonus. If Basic + DA exceeds Rs.10000/- then he is not eligible for bonus. However there is a wage ceiling of Rs.3500/- for payment of bonus. If an employee draws Rs.3500/- or more upto Rs.10000/- then his wage should be deemed as Rs.3500/- only. In other words if he draws Rs.4000/- his wage will be Rs.3500/- only for computation of bonus. If he draws less than Rs.3500/- say Rs.3400/- then the wage will be Rs.3400/- for computation of bonus.
4. The minimum % of bonus is 8.33% of annual Basic + DA and the maximum % is 20%.
5. As per bonus act the maximum bonus that a person can earn is Rs.8400/- per annum i.e Rs.3500/- X 12 = Rs.42000/- @ 20% = Rs.8400/-.
6. Ex-gratia is something that the management is willing to give voluntarily even if the employee is not eligible to receive bonus. The employer may not impose the wage ceiling of Rs.3500/- and may be willing to pay on the actual earnings of the employee even if it exceeds Rs.3500/-. He may also be willing to pay bonus if he exceeds Rs.10000/-.
Trust the matter is clarified.
M.V.KANNAN
From India, Madras
1. There is no minimum salary limit for bonus eligibility.
2.The maximum salary limit is Rs.10000/-
3. Basic + DA is considered for computing Bonus. If Basic + DA exceeds Rs.10000/- then he is not eligible for bonus. However there is a wage ceiling of Rs.3500/- for payment of bonus. If an employee draws Rs.3500/- or more upto Rs.10000/- then his wage should be deemed as Rs.3500/- only. In other words if he draws Rs.4000/- his wage will be Rs.3500/- only for computation of bonus. If he draws less than Rs.3500/- say Rs.3400/- then the wage will be Rs.3400/- for computation of bonus.
4. The minimum % of bonus is 8.33% of annual Basic + DA and the maximum % is 20%.
5. As per bonus act the maximum bonus that a person can earn is Rs.8400/- per annum i.e Rs.3500/- X 12 = Rs.42000/- @ 20% = Rs.8400/-.
6. Ex-gratia is something that the management is willing to give voluntarily even if the employee is not eligible to receive bonus. The employer may not impose the wage ceiling of Rs.3500/- and may be willing to pay on the actual earnings of the employee even if it exceeds Rs.3500/-. He may also be willing to pay bonus if he exceeds Rs.10000/-.
Trust the matter is clarified.
M.V.KANNAN
From India, Madras
Please note: the ceiling amount for calculation of Bonus has been enhansed from Rs3500 to Rs6500
From India, Bangalore
From India, Bangalore
if second day from date of joining employee was expired on duty. In this case employee eligible for gratuity ? if yes please provide calculation detail. if no, why ? Thanks Managobinda Behera
From India, Valsad
From India, Valsad
Hi Mr. Kannan,
I've a query: if the basic of an employee exceeds Rs.10,000/- then will he be eligible for Bonus and if yes what will be the amount?
Awaiting your reply.
Thanks and regards,
coolchini
From India, Mumbai
I've a query: if the basic of an employee exceeds Rs.10,000/- then will he be eligible for Bonus and if yes what will be the amount?
Awaiting your reply.
Thanks and regards,
coolchini
From India, Mumbai
Dear Friends,
I have a query.If the salary (Basic + DA ) of an employee is 3300 per month then bonus will be calculated on 3300 or on 3500 min.as mentioned in Check list of labour laws(attached herewith).
Please clarify the calculation part.
Thanks & Regards,
Neelam Nailwal
From India, Lucknow
I have a query.If the salary (Basic + DA ) of an employee is 3300 per month then bonus will be calculated on 3300 or on 3500 min.as mentioned in Check list of labour laws(attached herewith).
Please clarify the calculation part.
Thanks & Regards,
Neelam Nailwal
From India, Lucknow
1. What is the minimum salary for bonus eligibility
Ans :- There is no minimum salary for calculaltion of bonus. But there is maximum salary i.e BASIC+DA upto 10,000/- are entitle for bonus. Minimum Bonus Rs. 100/- should be paid.
2. What is the Maximum limit for bonus eligibility
Ans :- BASIC+DA upto Rs 10,000/- and below
3. what are all emoluments considered for Bonus eligibility calculations.
Ans :- BASIC+DA
4. What is the difference between Bonus and EX-Gratia
Ans :- Amout which is paid over and above the bonus is call Ex-Gratia. Bonus is a lawfull binding on employer but ex-gratia is employer wish to pay over & above of minimum or maximum bonus
5. What is the statutory presentage of bonus to be given?
Ans :-Minimum 8.33% & Maximum 20% (on BASIC + DA)
6. Any other details can be useful to me regarding bonus. please post
Ans :- Refer The Payment of Bonus Act.
From India, Pune
Ans :- There is no minimum salary for calculaltion of bonus. But there is maximum salary i.e BASIC+DA upto 10,000/- are entitle for bonus. Minimum Bonus Rs. 100/- should be paid.
2. What is the Maximum limit for bonus eligibility
Ans :- BASIC+DA upto Rs 10,000/- and below
3. what are all emoluments considered for Bonus eligibility calculations.
Ans :- BASIC+DA
4. What is the difference between Bonus and EX-Gratia
Ans :- Amout which is paid over and above the bonus is call Ex-Gratia. Bonus is a lawfull binding on employer but ex-gratia is employer wish to pay over & above of minimum or maximum bonus
5. What is the statutory presentage of bonus to be given?
Ans :-Minimum 8.33% & Maximum 20% (on BASIC + DA)
6. Any other details can be useful to me regarding bonus. please post
Ans :- Refer The Payment of Bonus Act.
From India, Pune
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Bonus eligibility.xls
Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf