for bonus the general calculation is 8.33% of basic.now its upto the management how much month they want to calculate.suppose someone has completed 12 months then 8.33% of basic multiplied by 12.Maninimum binus is 8.33% and Maximum is 20%
Now coming to gratuity,it is considered after 5 years of employement. calculation is basic/26*15*no of years.Now suppose someone has completed 5 yrs and 6 months then it will be considered as 6 years.
**basic means basic + da
From India, Hyderabad
Now coming to gratuity,it is considered after 5 years of employement. calculation is basic/26*15*no of years.Now suppose someone has completed 5 yrs and 6 months then it will be considered as 6 years.
**basic means basic + da
From India, Hyderabad
Hi Rakesh, The knowledge shared is very informative. I am confused in the calculation of Gratuity.. can you please help me with it. Regards Bhavya
From India, Bangalore
3From India, Bangalore
Bonus Act Amendment (2010) bill says
Min Bonus enhanced to 11%
Eligibility : For those who are drawing up to 11000 per month Basic + DA
Maximum Basic + DA to be considered = 5000/-.
that means Bonus can be paid to a maximum of Rs.6,600/-.
This is only MINIMUM.
Maximum Bonus payment depends on company policy.
GRATUITY:
Say Mr. A's salary is Rs.6000/- per month (BASIC+DA).
then 6000 will be divided by 26 days (6000/26). Multiplied by 15 days (6000 / 26 x 15 days0 = one year Gratuity amount.
ELIGIBILITY: Only on the day of completion of 5 years continued service.
If any one worked for 240 days after 5 years. any such 240 days should be treated as next full year.
i.e. 5 yrs + 240 sdays = 6 years Gratuity. 6 yrs + 240 days = 7 years eligibility like that.
Hope it is clear now both Bonus & the Gratuity.
From India, Madras
Min Bonus enhanced to 11%
Eligibility : For those who are drawing up to 11000 per month Basic + DA
Maximum Basic + DA to be considered = 5000/-.
that means Bonus can be paid to a maximum of Rs.6,600/-.
This is only MINIMUM.
Maximum Bonus payment depends on company policy.
GRATUITY:
Say Mr. A's salary is Rs.6000/- per month (BASIC+DA).
then 6000 will be divided by 26 days (6000/26). Multiplied by 15 days (6000 / 26 x 15 days0 = one year Gratuity amount.
ELIGIBILITY: Only on the day of completion of 5 years continued service.
If any one worked for 240 days after 5 years. any such 240 days should be treated as next full year.
i.e. 5 yrs + 240 sdays = 6 years Gratuity. 6 yrs + 240 days = 7 years eligibility like that.
Hope it is clear now both Bonus & the Gratuity.
From India, Madras
Ragav:
Thanks for sharing this information.
Please let me know the CAP OF GRATUITY AMOUNT AN EMPLOYEE is entitled to receive at the time of resignation.
Is there any limit or there is no limit on Gratuity payment. Kindly advise
Thanks
Kumar
From India
Thanks for sharing this information.
Please let me know the CAP OF GRATUITY AMOUNT AN EMPLOYEE is entitled to receive at the time of resignation.
Is there any limit or there is no limit on Gratuity payment. Kindly advise
Thanks
Kumar
From India
Hello sir,...... can u tell me hw to calculate the salary, pf,& esi mean any formula Plzzz tell me soon Neha
From India, Delhi
From India, Delhi
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Gratuity Valuation knowledge.pdf
Amendment to Payment of Bonus Act 2015.jpg