if basic + DA is less than 7000/- then on what we calculate bonus??
From India, Rewari
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3From India, Rewari
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if the bonus is less than the 7000 take the basic what ever the basic is ie ex. 6500 take it as the basic + DA .
From India, Hyderabad
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From India, Hyderabad
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But bonus amendment said whichever is higher either minimum wage or 7000/- My understanding is 7000/- Hemraj Yadav
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Dear Manu Taneja, In your case, since basic+DA is less than 7000, as per statutory obligation, you have to make min.rs.7000/- as bonus.
From India, Thane
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From India, Thane
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Hemraj,
Bonus is to be paid on the actual wages for the year (basic + DA paid each month for the entire financial year). The act provides a ceiling. The ceiling is that if the wages are higher than ₹7000 per month, or higher than the minimum wages where the minimum wage is more than ₹7000 per month, the bonus will be paid as if the employee had wages of ₹7000 (or the minimum wage rate, whichever is higher). I hope you are now clear about the distinction between the two of them.
From India, Mumbai
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Bonus is to be paid on the actual wages for the year (basic + DA paid each month for the entire financial year). The act provides a ceiling. The ceiling is that if the wages are higher than ₹7000 per month, or higher than the minimum wages where the minimum wage is more than ₹7000 per month, the bonus will be paid as if the employee had wages of ₹7000 (or the minimum wage rate, whichever is higher). I hope you are now clear about the distinction between the two of them.
From India, Mumbai
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Dear Saswata ji,
Ceiling and actual wage words are not mentioned nor used in the bonus act anywhere. It is written in the act to calculate bonus on actual wages for those earning less than 7000/-. This is an individual understanding and is clearly written in the amendment as 7000/- or minimum wage, whichever is higher.
Please check.
Regards,
Hemraj
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Ceiling and actual wage words are not mentioned nor used in the bonus act anywhere. It is written in the act to calculate bonus on actual wages for those earning less than 7000/-. This is an individual understanding and is clearly written in the amendment as 7000/- or minimum wage, whichever is higher.
Please check.
Regards,
Hemraj
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Dear D.srihari, Kindly go through the amendment once again and then comment on the issue please. Your interpretation is contrary to the amendment. P K Sharma
From India, Delhi
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From India, Delhi
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Dear Manu Taneja,
The objective of the ceiling limit of 7000 is to reduce the burden on the employer and to provide a reasonable bonus to all eligible employees/workers. Therefore, irrespective of the actual Basic plus DA, calculate the annual bonus either on 7000 or on your state's minimum wages for scheduled employees, whichever is higher as per Section 12.
Calculating the bonus on actual Basic plus DA in case of less than 7000 is just to avoid statutory dues, which are subjected to punishment and penalties as defined in Section 28 of the Bonus Act. Hence, even if Basic plus DA is less than the ceiling limit, always calculate the bonus either on the ceiling limit or on the state minimum wages for scheduled employees, whichever is higher.
Thanks and Regards,
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, and Labour Laws
From India, Basti
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The objective of the ceiling limit of 7000 is to reduce the burden on the employer and to provide a reasonable bonus to all eligible employees/workers. Therefore, irrespective of the actual Basic plus DA, calculate the annual bonus either on 7000 or on your state's minimum wages for scheduled employees, whichever is higher as per Section 12.
Calculating the bonus on actual Basic plus DA in case of less than 7000 is just to avoid statutory dues, which are subjected to punishment and penalties as defined in Section 28 of the Bonus Act. Hence, even if Basic plus DA is less than the ceiling limit, always calculate the bonus either on the ceiling limit or on the state minimum wages for scheduled employees, whichever is higher.
Thanks and Regards,
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, and Labour Laws
From India, Basti
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Dear Manu Bhai,
I don't know why there is doubt or confusion. For individuals earning higher than Rs. 7000/- but up to Rs. 21000/-, their bonus will be calculated based on a salary of Rs. 7000/- or the minimum wages, whichever is higher. For those earning less than Rs. 7000/-, their bonus will be calculated based on the actual pay (basic plus DA) they receive.
BS Kalsi
Member since August 2011
From India, Mumbai
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I don't know why there is doubt or confusion. For individuals earning higher than Rs. 7000/- but up to Rs. 21000/-, their bonus will be calculated based on a salary of Rs. 7000/- or the minimum wages, whichever is higher. For those earning less than Rs. 7000/-, their bonus will be calculated based on the actual pay (basic plus DA) they receive.
BS Kalsi
Member since August 2011
From India, Mumbai
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