The Key Changes In The Payment Of Bonus (Amendment),Act 2015
1. Effective April 1, 2014. Retrospective.
2. Eligible Salary (Basic) up to Rs.21000/- P.M.
3. The Bonus Calculation Ceiling Limit revised to Rs.7000/- Per Month Or The Minimum Wages For The Scheduled Employment, As Fixed By The Appropriate Government, Whichever Is Higher.
Now my query is if any employee is getting basic salary Rs. 8000/- P.M which is over the limit mentioned in the Minimum wages Act. As per the Minimum Wages he is to be paid Rs. 7500 P.M .
In the given situation on which amount bonus calculation will be done on Rs. 8,000/- or Rs. 7,500/- ?
Thanks
Mamta
From India, Delhi
1. Effective April 1, 2014. Retrospective.
2. Eligible Salary (Basic) up to Rs.21000/- P.M.
3. The Bonus Calculation Ceiling Limit revised to Rs.7000/- Per Month Or The Minimum Wages For The Scheduled Employment, As Fixed By The Appropriate Government, Whichever Is Higher.
Now my query is if any employee is getting basic salary Rs. 8000/- P.M which is over the limit mentioned in the Minimum wages Act. As per the Minimum Wages he is to be paid Rs. 7500 P.M .
In the given situation on which amount bonus calculation will be done on Rs. 8,000/- or Rs. 7,500/- ?
Thanks
Mamta
From India, Delhi
Hi Mamta, As per amendment in the rules for Bonus calculation ceiling, calculation will be done on INR 7500 Regards Neetu
1
As per my knowledge, the bonus to be paid on Rs. 8,000. The Act says, Basic (+ DA) or Minimum Wage or Rs. 7,000, whichever is higher.
From India, Chennai
From India, Chennai
as per my knowledge the bonus paid Rs7500/- (april to june , july to dec & jan to march three minimum wages taken this is higer Rs.7000/- this amt for bonus wages. mojes pereira
From India, Mumbai
From India, Mumbai
See, the rule is the following -
1. Rs. 7500/-
2. Minimum wages fixed by the State Govt.
3. Amount equal to 8.33% of salary paid in the last year (basically it comes to one month's salary)
Base amount for calculation of Bonus will be the amount whichever is higher among the above 3 points.
Regards
Debasish Bhattacharya
From India, New Delhi
1. Rs. 7500/-
2. Minimum wages fixed by the State Govt.
3. Amount equal to 8.33% of salary paid in the last year (basically it comes to one month's salary)
Base amount for calculation of Bonus will be the amount whichever is higher among the above 3 points.
Regards
Debasish Bhattacharya
From India, New Delhi
Sorry. There is a mistake in my earlier post.
In case the 8.33% salary amount exceed Rs. 7500/- , then 7500/- will be treated as basic for bonus calculation.
For example,
1. Salary equal to 8.33% coming to Rs. 8000/-
2. Minimum wages is 7000/-
Then bonus will be calculated on Rs. 7500/-
Regards
Debasish Bhattacharya
From India, New Delhi
In case the 8.33% salary amount exceed Rs. 7500/- , then 7500/- will be treated as basic for bonus calculation.
For example,
1. Salary equal to 8.33% coming to Rs. 8000/-
2. Minimum wages is 7000/-
Then bonus will be calculated on Rs. 7500/-
Regards
Debasish Bhattacharya
From India, New Delhi
According to my understanding, as per new amendment, Bonus will be calculated as bellow:
Minimum Bonus @8.33% of Basic + DA ( Maximum 20%) keeping in mind ceiling of Rs.7000/- or applicable minimum wages , which ever is higher. i.e where Basic + DA is more than Rs.7000/- or min. wages, Bonus will be calculated on Rs.7000/- or Min. wages whichever is higher. It covers employees getting less than Rs.21000/- (basic+DA).
In other words, those who are earning more than Rs.7000+ or Min. Wages, will get equal bonus irrespective of their salary ( Basic+DA) till the cap of Rs.21000/-.
Pl explain /clarify if this is not correct.
From India, Ahmedabad
Minimum Bonus @8.33% of Basic + DA ( Maximum 20%) keeping in mind ceiling of Rs.7000/- or applicable minimum wages , which ever is higher. i.e where Basic + DA is more than Rs.7000/- or min. wages, Bonus will be calculated on Rs.7000/- or Min. wages whichever is higher. It covers employees getting less than Rs.21000/- (basic+DA).
In other words, those who are earning more than Rs.7000+ or Min. Wages, will get equal bonus irrespective of their salary ( Basic+DA) till the cap of Rs.21000/-.
Pl explain /clarify if this is not correct.
From India, Ahmedabad
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Bonus act amendment gazette copy.pdf
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