Dear Members,
Can you please clarify the following -
Case 1 - If an employee's basic salary is Rs. 4000 and gross salary is Rs. 7000, will the bonus be calculated on Rs. 4000 or Rs. 7000?
Case 2 - If an employee's basic salary is Rs. 5600 and gross salary is Rs. 11000, will the bonus be calculated on Rs. 5600 or Rs. 7000?
Case 3 - If an employee's basic salary is Rs. 6995 and gross salary is Rs. 13600, will the bonus be calculated on Rs. 6995 or Rs. 7000?
Case 4 - If an employee's basic salary is Rs. 11800 and gross salary is Rs. 21000, does this employee come under the purview of the bonus act?
Case 5 - If an employee's basic salary is Rs. 12000 and gross salary is Rs. 21200, does this employee come under the purview of the bonus act?
Case 6 - If an employee's basic salary is Rs. 21000 and gross salary is Rs. 32000, does this employee come under the bonus act or not? If yes, what amount of bonus will be calculated?
Regards,
Nabarun Basu
From India, Siliguri
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1Can you please clarify the following -
Case 1 - If an employee's basic salary is Rs. 4000 and gross salary is Rs. 7000, will the bonus be calculated on Rs. 4000 or Rs. 7000?
Case 2 - If an employee's basic salary is Rs. 5600 and gross salary is Rs. 11000, will the bonus be calculated on Rs. 5600 or Rs. 7000?
Case 3 - If an employee's basic salary is Rs. 6995 and gross salary is Rs. 13600, will the bonus be calculated on Rs. 6995 or Rs. 7000?
Case 4 - If an employee's basic salary is Rs. 11800 and gross salary is Rs. 21000, does this employee come under the purview of the bonus act?
Case 5 - If an employee's basic salary is Rs. 12000 and gross salary is Rs. 21200, does this employee come under the purview of the bonus act?
Case 6 - If an employee's basic salary is Rs. 21000 and gross salary is Rs. 32000, does this employee come under the bonus act or not? If yes, what amount of bonus will be calculated?
Regards,
Nabarun Basu
From India, Siliguri
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Hi,
Greetings of the day!
As per the recent amendment, we have to calculate the bonus on "seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher."
1. The eligibility limit for the payment of bonus has been increased from Rs. 10,000 to Rs. 21,000.
2. The calculation ceiling has been increased from Rs. 3,500 per month to Rs. 7,000 per month.
The amendments have been made effective retrospectively from 1st April 2014. Hence, we will have to work out the differential liability for 2014-15 and make payments accordingly.
Regards,
Ashish
From India, Pune
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Greetings of the day!
As per the recent amendment, we have to calculate the bonus on "seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher."
1. The eligibility limit for the payment of bonus has been increased from Rs. 10,000 to Rs. 21,000.
2. The calculation ceiling has been increased from Rs. 3,500 per month to Rs. 7,000 per month.
The amendments have been made effective retrospectively from 1st April 2014. Hence, we will have to work out the differential liability for 2014-15 and make payments accordingly.
Regards,
Ashish
From India, Pune
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Dear Ashish Sir, Kindly tell me ...is ESIC deducted from bonus?
From India, Bengaluru
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From India, Bengaluru
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Dear Nabarun Basu,
For your kind reference, I am attaching the amended sheet for Bonus Calculation. Please review it carefully. If you need any clarification, feel free to call me at the number provided below: +91 987 176 3456.
By the way, Mr. Ashish is clearly mentioned here, so I don't think you need further clarification.
Thank you.
From India, Delhi
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For your kind reference, I am attaching the amended sheet for Bonus Calculation. Please review it carefully. If you need any clarification, feel free to call me at the number provided below: +91 987 176 3456.
By the way, Mr. Ashish is clearly mentioned here, so I don't think you need further clarification.
Thank you.
From India, Delhi
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Bonus is to be computed on basic and DA and has nothing to do with gross.
Further, if basic and DA are more than 7000 or minimum wages, whichever is higher, then the bonus will be paid on that ceiling amount and not on basic and DA.
From India, Mumbai
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Further, if basic and DA are more than 7000 or minimum wages, whichever is higher, then the bonus will be paid on that ceiling amount and not on basic and DA.
From India, Mumbai
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DEAR MR. NABARUNR FOR YOUR CASES FROM 1 TO 3 ANSWER IS 7000/- AND EMPLOYEES FROM CASE 4 TO 6 ARE ELIGIBLE FOR BOUNUS. REGARDS PARDEEP SHARMA
From India, Mumbai
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From India, Mumbai
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Dear sir, kindly clarify the difference or comparison between rs 7000/- celing of BASIC DA and MINIMUM WAGES CEILING.... NANDHAGOPALAN.R
From India, Chennai
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From India, Chennai
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Hi Nandagopal,
The new act states that for the purpose of computing bonuses, you need to take 8.33% of the annual salary (or 20% of the annual salary). The salary will be the lower of the actual salary or ₹7000 per month. However, if the minimum wage is more than ₹7000 per month, then you should take the ceiling of the minimum wage instead of ₹7000.
Hope this is clear.
From India, Mumbai
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The new act states that for the purpose of computing bonuses, you need to take 8.33% of the annual salary (or 20% of the annual salary). The salary will be the lower of the actual salary or ₹7000 per month. However, if the minimum wage is more than ₹7000 per month, then you should take the ceiling of the minimum wage instead of ₹7000.
Hope this is clear.
From India, Mumbai
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Dear Basu,
For points 1 to 3, the bonus will be calculated based on the actual basic salary.
For points 4 to 6, the bonus will be calculated on Rs. 7000 or the minimum wages as fixed by the government for that category of employment, whichever is higher. If the minimum wage is Rs. 7600, then the bonus will be calculated on Rs. 7600, not on Rs. 7000.
Regards,
Dinesh Kumar
From India, New Delhi
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For points 1 to 3, the bonus will be calculated based on the actual basic salary.
For points 4 to 6, the bonus will be calculated on Rs. 7000 or the minimum wages as fixed by the government for that category of employment, whichever is higher. If the minimum wage is Rs. 7600, then the bonus will be calculated on Rs. 7600, not on Rs. 7000.
Regards,
Dinesh Kumar
From India, New Delhi
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Dear Nabarun,
Reply to your queries:
Case 1: Bonus will be calculated on $4000 or the minimum wages if it is scheduled employment, whichever is higher.
Case 2: Bonus will be calculated on $5600 or the minimum wages if it is scheduled employment, whichever is higher.
Case 3: Bonus will be calculated on $6995 or the minimum wages if it is scheduled employment, whichever is higher.
Case 4: Bonus will be calculated on $7000 or the minimum wages if it is scheduled employment, whichever is higher. The employee is covered under the Bonus Act.
Case 5: Bonus will be calculated on $7000 or the minimum wages if it is scheduled employment, whichever is higher. The employee is covered under the Bonus Act.
Case 6: Bonus will be calculated on $7000 or the minimum wages if it is scheduled employment, whichever is higher. The employee is covered under the Bonus Act.
I trust the above information will address your queries.
S K Bandyopadhyay
USD HR Solutions
+919831081531
From India, New Delhi
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Reply to your queries:
Case 1: Bonus will be calculated on $4000 or the minimum wages if it is scheduled employment, whichever is higher.
Case 2: Bonus will be calculated on $5600 or the minimum wages if it is scheduled employment, whichever is higher.
Case 3: Bonus will be calculated on $6995 or the minimum wages if it is scheduled employment, whichever is higher.
Case 4: Bonus will be calculated on $7000 or the minimum wages if it is scheduled employment, whichever is higher. The employee is covered under the Bonus Act.
Case 5: Bonus will be calculated on $7000 or the minimum wages if it is scheduled employment, whichever is higher. The employee is covered under the Bonus Act.
Case 6: Bonus will be calculated on $7000 or the minimum wages if it is scheduled employment, whichever is higher. The employee is covered under the Bonus Act.
I trust the above information will address your queries.
S K Bandyopadhyay
USD HR Solutions
+919831081531
From India, New Delhi
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