Sir, Please clarify the bonus calculation, whether consider working days wage or 7000/26*working days. Mutyala
From India, Hyderabad
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From India, Hyderabad
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Dear Mutyala,
Please find attached the gazette, which will be helpful to you for resolving your query. Also, the calculation of the bonus amount is at your discretion, but the minimum amount for consideration cannot be below Rs. 7000/-. If your daily wages are higher than Rs. 7000/-, then yes, you can pay the bonus based on that amount.
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395Please find attached the gazette, which will be helpful to you for resolving your query. Also, the calculation of the bonus amount is at your discretion, but the minimum amount for consideration cannot be below Rs. 7000/-. If your daily wages are higher than Rs. 7000/-, then yes, you can pay the bonus based on that amount.
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First, you need to decide what rate you are required to pay. The rate depends on the amount of profit you have made, and the procedure for computing it is clearly provided for in the bonus act.
Once you have determined the rate (minimum 8.33%, maximum 20%), you need to determine the qualifying amount, which is the actual wages paid or the ceiling limit of ₹7000 per month. Then you need to apply the percentage on the total annual wages.
Please note that in case the minimum wage is higher than ₹7000, the minimum wage is the monthly ceiling.
From India, Mumbai
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Once you have determined the rate (minimum 8.33%, maximum 20%), you need to determine the qualifying amount, which is the actual wages paid or the ceiling limit of ₹7000 per month. Then you need to apply the percentage on the total annual wages.
Please note that in case the minimum wage is higher than ₹7000, the minimum wage is the monthly ceiling.
From India, Mumbai
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Dear Mutyala,
Bonus used to be calculated on the basis of 26 days as a denominator because the minimum wages of the particular state come under the scheduled employment notification for the 26 days only, excluding the weekly-off from it.
Besides 7000.00, the figure quoted by you is for your understanding. If the minimum wages for the particular state are above 7000.00, say 8000.00, then you will have to consider minimum wages of Rs. 8000.00 for the calculation of the bonus and not 7000.00. Furthermore, if the minimum wages are less than 7000.00, say 6800.00, then the bonus will be calculated considering that his wages are 7000.00 only.
Please correct me on the facts if I am wrong.
Regards,
Ravi
From India, Nagpur
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Bonus used to be calculated on the basis of 26 days as a denominator because the minimum wages of the particular state come under the scheduled employment notification for the 26 days only, excluding the weekly-off from it.
Besides 7000.00, the figure quoted by you is for your understanding. If the minimum wages for the particular state are above 7000.00, say 8000.00, then you will have to consider minimum wages of Rs. 8000.00 for the calculation of the bonus and not 7000.00. Furthermore, if the minimum wages are less than 7000.00, say 6800.00, then the bonus will be calculated considering that his wages are 7000.00 only.
Please correct me on the facts if I am wrong.
Regards,
Ravi
From India, Nagpur
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BONUS CALCULATION BY WORKING DAYS.xls
Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf