I want to know calculation of statutory Bonus.
Example : My Basic + Da is Rs.12000/- & i am working in Delhi & minimum wages of Delhi is Rs.16000/- for FY 2016-17.
so bonus will calculate on Rs.16000/- or Rs.12000/-.
As per new bonus amendment bonus will calculate on Minimum Rs. 7000/- or state minimum wages whichever is high.
From India, New Delhi
4Example : My Basic + Da is Rs.12000/- & i am working in Delhi & minimum wages of Delhi is Rs.16000/- for FY 2016-17.
so bonus will calculate on Rs.16000/- or Rs.12000/-.
As per new bonus amendment bonus will calculate on Minimum Rs. 7000/- or state minimum wages whichever is high.
From India, New Delhi
You have to calculate the bonus as the actual percentage to the statutory minimum wages only as it is higher the notional amount of salary of Rs.7000/=.
From India, Salem
From India, Salem
Dear Pawan ji,
Hope this link would help you to understand better post amendment. for info please.
https://arghaa.com/news/calculation-...-amendment/439
From India, Chennai
Hope this link would help you to understand better post amendment. for info please.
https://arghaa.com/news/calculation-...-amendment/439
From India, Chennai
Dear Ranjan,
I do not agree to your Example 1. Even the Basic salary is Rs.6,800, we have to consider his Basic salary as of Rs.7,000/- for calculation of Bonus as per amended Bonus act.
Secondly in example 3 the Basic salary is wrongly typed as Rs.7,000 instead of Rs.12,662.
Correct me if I am wrong.
Regards,
Suresh
From India, Thane
I do not agree to your Example 1. Even the Basic salary is Rs.6,800, we have to consider his Basic salary as of Rs.7,000/- for calculation of Bonus as per amended Bonus act.
Secondly in example 3 the Basic salary is wrongly typed as Rs.7,000 instead of Rs.12,662.
Correct me if I am wrong.
Regards,
Suresh
From India, Thane
Bonus calculation for basic salary is Rs. 7000/- if basic salary is less than Rs. 7000/- i.e. Rs. 6000/- bonus will calculated on Rs. 6000/-.
From India, Mumbai
From India, Mumbai
Santosh,
How you will arrive minimum Bonus amount of Rs.7,000/- when the % of Bonus is 8.33 and the employee's basic salary is Rs.6,000/-? Is there any special mechanism in maths? If not, then we have to consider basic salary of Rs.7,000/- inorder to arrive the minimum amount of bonus of Rs.7,000/-.
For example Ashok is drawing basic salary of Rs.4,000/- per month then he will be entitled to get 8.33% bonus of Rs.4,000/- if he worked whole F.Y. without LOP. Inorder to pay him bonus amount of Rs.7,000/- he should be paid 14.585% bonus on Rs.4,000/-.
Instead of doing this type of reverse calculation for employees drawing basic salary <7,000/- consider such cases as if they are drawing salary of Rs.7,000/- per month, when the % of Bonus is 8.33%.
Suresh
From India, Thane
How you will arrive minimum Bonus amount of Rs.7,000/- when the % of Bonus is 8.33 and the employee's basic salary is Rs.6,000/-? Is there any special mechanism in maths? If not, then we have to consider basic salary of Rs.7,000/- inorder to arrive the minimum amount of bonus of Rs.7,000/-.
For example Ashok is drawing basic salary of Rs.4,000/- per month then he will be entitled to get 8.33% bonus of Rs.4,000/- if he worked whole F.Y. without LOP. Inorder to pay him bonus amount of Rs.7,000/- he should be paid 14.585% bonus on Rs.4,000/-.
Instead of doing this type of reverse calculation for employees drawing basic salary <7,000/- consider such cases as if they are drawing salary of Rs.7,000/- per month, when the % of Bonus is 8.33%.
Suresh
From India, Thane
Dear friends,
At times, multiplicity of clarifications renders the confusion worse confounded. Therefore, let us see at first Section 12 of the PB Act,1965 as it stands after the 2015 Amendment:
" 12. Calculation of bonus with respect to certain employees -
(i) Where the salary or wage of an employee exceeds seven thousand rupees per mansem, the bonus payable to
such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary
or wage were seven thousand rupees per mansem or the minimum wage for the scheduled employment, as
fixed by the appropriate Government, whichever is higher.
(ii) Explanation.- For the purpose of this section, the expression " scheduled employment " shall have the same
meaning as assigned to it in clause (g) of section 2 of the Minimum Wages Act,1948. "
Therefore, it simply follows that -
(a) When the salary or wage of an employee is more than Rs.7000/-p.m, it shall be notionally limited to Rs.7000/- only and
minimum or maximum bonus payable to be calculated accordingly.
(b) In the case of any such employee who is covered under the Minimum Wages Act,1948, the above notional wages for the
purpose of calculation shall be Rs.7000/- or the minimum wages for his employment whichever is higher.
From India, Salem
At times, multiplicity of clarifications renders the confusion worse confounded. Therefore, let us see at first Section 12 of the PB Act,1965 as it stands after the 2015 Amendment:
" 12. Calculation of bonus with respect to certain employees -
(i) Where the salary or wage of an employee exceeds seven thousand rupees per mansem, the bonus payable to
such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary
or wage were seven thousand rupees per mansem or the minimum wage for the scheduled employment, as
fixed by the appropriate Government, whichever is higher.
(ii) Explanation.- For the purpose of this section, the expression " scheduled employment " shall have the same
meaning as assigned to it in clause (g) of section 2 of the Minimum Wages Act,1948. "
Therefore, it simply follows that -
(a) When the salary or wage of an employee is more than Rs.7000/-p.m, it shall be notionally limited to Rs.7000/- only and
minimum or maximum bonus payable to be calculated accordingly.
(b) In the case of any such employee who is covered under the Minimum Wages Act,1948, the above notional wages for the
purpose of calculation shall be Rs.7000/- or the minimum wages for his employment whichever is higher.
From India, Salem
I do agree the provisions and narration by Mr Umakanthanji. Hope we should follow the provisions.
From India
From India
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf