We are paying a bonus on 3500 (limit as per act) * 8.33% = 291.55, formula. Suppose I have three eligible employees for the bonus.
"A" present days 26 * 200.10 = 5203 & hence gets 3500 * 8.33% = 292/pm.
"B" present days 20 * 200.10 = 4002, hence get 3500 * 8.33% = 292.
"C" present days 10 * 200.10 = 2001 * 8.33% = 167.
My query: Is the above calculation right, or does it need any change?
From India, Visnagar
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8"A" present days 26 * 200.10 = 5203 & hence gets 3500 * 8.33% = 292/pm.
"B" present days 20 * 200.10 = 4002, hence get 3500 * 8.33% = 292.
"C" present days 10 * 200.10 = 2001 * 8.33% = 167.
My query: Is the above calculation right, or does it need any change?
From India, Visnagar
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Dear Nevyas,
Your calculation and understanding are correct. I would like to share with you a simple method as outlined below:
1. Write down in a register the earned B+DA during the 12 months, month-wise against each employee's name.
2. If B+DA exceeds 10000, delete those entries/names from the register.
3. If the entries are only in one, two, or three months, check the total number of days worked by the employee. If it is less than 30, remove their name from the register.
4. If B+DA is more than 3500, write/restrict it to 3500; if it is less than 3500, retain the actual amount.
5. Sum up the amounts for all 12 months. This total is the B+DA amount eligible for bonus calculation.
6. Calculate the bonus by multiplying the decided percentage to the total B+DA amount eligible for the bonus calculation.
I hope I have simplified it for you. You can open an Excel sheet and input appropriate formulas. It would be greatly appreciated if you could create an Excel sheet as described above and share it for the benefit of the forum.
From India, Mumbai
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Your calculation and understanding are correct. I would like to share with you a simple method as outlined below:
1. Write down in a register the earned B+DA during the 12 months, month-wise against each employee's name.
2. If B+DA exceeds 10000, delete those entries/names from the register.
3. If the entries are only in one, two, or three months, check the total number of days worked by the employee. If it is less than 30, remove their name from the register.
4. If B+DA is more than 3500, write/restrict it to 3500; if it is less than 3500, retain the actual amount.
5. Sum up the amounts for all 12 months. This total is the B+DA amount eligible for bonus calculation.
6. Calculate the bonus by multiplying the decided percentage to the total B+DA amount eligible for the bonus calculation.
I hope I have simplified it for you. You can open an Excel sheet and input appropriate formulas. It would be greatly appreciated if you could create an Excel sheet as described above and share it for the benefit of the forum.
From India, Mumbai
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