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
Acknowledge(0)
Amend(0)
From India, Aurangabad
Acknowledge(0)Amend(0)
To calculate the bonus, first, determine the available surplus by deducting tax, depreciation, developmental rebate, etc., from the gross profit. It is recommended to consult an expert in this matter for better guidance. Subsequently, identify the allocable surplus, which is 67% of the available surplus for companies and 60% for Banking Institutions. Allocate this surplus among eligible employees, adhering to the following conditions.
If the allocable surplus is adequate for 20% or more, the maximum bonus is 20%. Any excess can be carried forward (up to another 20%) for the next four years, known as Set On. In case the allocable surplus is 8.33% or below, the bonus payment will be 8.33%. Any remaining amount can be adjusted over the next four years, referred to as Set Off. If the allocable surplus falls between 8.33% and 20%, the exact percentage should be paid.
Please note that 8.33% represents the percentage equivalent of 1/12, which equals one month's payment for one year. Similarly, 20% is 2.4 times the salary.
Ex-gratia is not a statutory requirement. It denotes payment beyond the ceiling or to employees outside the coverage limit.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
530If the allocable surplus is adequate for 20% or more, the maximum bonus is 20%. Any excess can be carried forward (up to another 20%) for the next four years, known as Set On. In case the allocable surplus is 8.33% or below, the bonus payment will be 8.33%. Any remaining amount can be adjusted over the next four years, referred to as Set Off. If the allocable surplus falls between 8.33% and 20%, the exact percentage should be paid.
Please note that 8.33% represents the percentage equivalent of 1/12, which equals one month's payment for one year. Similarly, 20% is 2.4 times the salary.
Ex-gratia is not a statutory requirement. It denotes payment beyond the ceiling or to employees outside the coverage limit.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Pleas go to any PF pension related thread and raise your doubts. Site : citeHR/tags/pension Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Team,
I noticed that one HR manager mentioned that the bonus calculation is based on a basic salary of 3500. What should we do if the employees have a salary below 3500? Could you please explain the actual process for paying the basic bonus? I came across information on Cite HR stating 2500. Which amount is correct, 3500 or 2500?
Regards,
Sanjay
From India, Hyderabad
Acknowledge(0)Amend(0)
I noticed that one HR manager mentioned that the bonus calculation is based on a basic salary of 3500. What should we do if the employees have a salary below 3500? Could you please explain the actual process for paying the basic bonus? I came across information on Cite HR stating 2500. Which amount is correct, 3500 or 2500?
Regards,
Sanjay
From India, Hyderabad
Acknowledge(0)Amend(0)
The maximum salary to calculate the bonus is Rs. 3500 and for coverage is Rs. 10,000. If the salary is below Rs. 3500, the actual salary will be taken into account for bonus calculation. Prior to 2006-07, the maximum salary to calculate the bonus was Rs. 2500.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf