Dear All,
Requesting you to please revert with your expert views on the query below.
The employee is entitled to a bonus as per the Bonus Act and is drawing a bonus wage of Rs. 10,000/- per month. In case he is absent for two days, he will receive a bonus wage of 10000/30*28 = Rs. 9,333/-, which is above Rs. 7,000/-.
Now, for bonus calculation for that month, it will be:
- 7000 * 20% = Rs. 1,400/-
or
- 7000/30 * 28 = 6533 * 20% = Rs. 1,307/-
Please advise on which calculation is correct, and if you have any Supreme Court case laws, please refer to them.
Thank you in advance!
From India, Thrissur
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1Requesting you to please revert with your expert views on the query below.
The employee is entitled to a bonus as per the Bonus Act and is drawing a bonus wage of Rs. 10,000/- per month. In case he is absent for two days, he will receive a bonus wage of 10000/30*28 = Rs. 9,333/-, which is above Rs. 7,000/-.
Now, for bonus calculation for that month, it will be:
- 7000 * 20% = Rs. 1,400/-
or
- 7000/30 * 28 = 6533 * 20% = Rs. 1,307/-
Please advise on which calculation is correct, and if you have any Supreme Court case laws, please refer to them.
Thank you in advance!
From India, Thrissur
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Bonus is payable on actual earnings. In the present case, the employee's basic is Rs 10,000/-. Bonus is payable on Rs 7,000 or minimum wages, whichever is higher. Find out the minimum wages applicable for the relevant year. If the minimum wages are more than Rs 7,000/-, calculate bonus on actual minimum wages. If the minimum wages are less than Rs 7,000/-, calculate bonus on Rs 7,000/-. The calculation should be based on actual earnings.
From India, New Delhi
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From India, New Delhi
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Thank you Mr. Srinath. Can you give your advise on the calculation specific to my query.
From India, Thrissur
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From India, Thrissur
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Dear sir, I am Haragopal, I have small doubt Bonus is calculated on 8.33% or 20% please give me a clarification Thank you sir Regards Haragopal cont : 8520032500
From India, Hyderabad
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From India, Hyderabad
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First, you have to generate Bonus Register Form-A & B. Based on the information, the percentage of Bonus payable for the respective accounting year is decided not on hypothetical figures but on actual figures.
Loss-making units as per the Balance sheet are liable to pay a Minimum Bonus at 8.33%. For profit-making units, the payment of Bonus is limited to a maximum of 20%.
From India, New Delhi
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Loss-making units as per the Balance sheet are liable to pay a Minimum Bonus at 8.33%. For profit-making units, the payment of Bonus is limited to a maximum of 20%.
From India, New Delhi
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Dear Mr. Amit,
If wages are 10000 and he has leave without pay for 2 days, the earned wages for the month will be 10000/26*24 = 9,231. Now for bonus calculation, it is as follows:
(a) Suppose the minimum wage is Rs.6,855, then the bonus will be on Rs.7,000. So it will be 7000 * Bonus percentage.
(b) Suppose the minimum wage is Rs.8,025, then the bonus will be on Rs.8,025. So it will be 8025 * Bonus percentage.
In case he has leave without pay for 9 days, the earned wages for the month will be 10000/26*17 = 6,539. In this case, the bonus calculation will be as follows:
(c) Suppose the minimum wage is Rs.6,855, then the bonus will be on Rs.7,000 or earned wages, whichever is lower. So it will be 6,539 * Bonus percentage.
(d) Suppose the minimum wage is Rs.8,025, then the bonus will be on Rs.8,025 or earned wages, whichever is lower. So it will be 6,539 * Bonus percentage.
The formula in Excel will be something like this: MIN(EarnedWages, MAX(7000, MinimumWages))
From India, Delhi
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If wages are 10000 and he has leave without pay for 2 days, the earned wages for the month will be 10000/26*24 = 9,231. Now for bonus calculation, it is as follows:
(a) Suppose the minimum wage is Rs.6,855, then the bonus will be on Rs.7,000. So it will be 7000 * Bonus percentage.
(b) Suppose the minimum wage is Rs.8,025, then the bonus will be on Rs.8,025. So it will be 8025 * Bonus percentage.
In case he has leave without pay for 9 days, the earned wages for the month will be 10000/26*17 = 6,539. In this case, the bonus calculation will be as follows:
(c) Suppose the minimum wage is Rs.6,855, then the bonus will be on Rs.7,000 or earned wages, whichever is lower. So it will be 6,539 * Bonus percentage.
(d) Suppose the minimum wage is Rs.8,025, then the bonus will be on Rs.8,025 or earned wages, whichever is lower. So it will be 6,539 * Bonus percentage.
The formula in Excel will be something like this: MIN(EarnedWages, MAX(7000, MinimumWages))
From India, Delhi
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf