Dear sir, i want to know about calculation of ex-gracia bonus & calculation of bonus if possible give me details of it. avaiting reply thanks & regards
From India, Aurangabad
From India, Aurangabad
To calculate bonus, first arrive available surplus by deducting Tax, depreciation, developmental rebate etc. on gross profit. (Better you consult an expert in this regard). Find allocable surplus which is 67% of available surplus for companies and 60% for Banking Institutions. Distribute this allocable surplus among the eligible employees, subject to the following restrictions.
If the allocable surplus is sufficient for 20% or more, maximum bonus is 20%. If any excess, it can be carried forward (up to a maximum of another 20%) to next four years, which is called Set On. If allocable surplus is 8.33% or below, bonus payment will be 8.33%. Balance amount can be adjusted from next four years called Set Off. If allocable surplus is in between 8.33% and 20%, the actual percentage has to be paid.
Please note that 8.33% is the percentage form of 1/12. Accordingly it is one month payment for one year. Similarly 20% is equivalent to 2.4 times of salary.
EX-gratia is not statutory. It is the payment beyond ceiling or to the employees beyond coverage limit. I
Abbas.P.S
From India, Bangalore
517If the allocable surplus is sufficient for 20% or more, maximum bonus is 20%. If any excess, it can be carried forward (up to a maximum of another 20%) to next four years, which is called Set On. If allocable surplus is 8.33% or below, bonus payment will be 8.33%. Balance amount can be adjusted from next four years called Set Off. If allocable surplus is in between 8.33% and 20%, the actual percentage has to be paid.
Please note that 8.33% is the percentage form of 1/12. Accordingly it is one month payment for one year. Similarly 20% is equivalent to 2.4 times of salary.
EX-gratia is not statutory. It is the payment beyond ceiling or to the employees beyond coverage limit. I
Abbas.P.S
From India, Bangalore
Dear Team,
I saw one hr manager wrote the process of bonus to be caluclated basic salary on 3500 if the below 3500 employees what can we do can u please tell me the actula process of pay the bonus basic ? i saw in cite hr mentioned as 2500 which one is correct 3500 or 2500.
Regars
Sanjay
From India, Hyderabad
I saw one hr manager wrote the process of bonus to be caluclated basic salary on 3500 if the below 3500 employees what can we do can u please tell me the actula process of pay the bonus basic ? i saw in cite hr mentioned as 2500 which one is correct 3500 or 2500.
Regars
Sanjay
From India, Hyderabad
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf