I want to know the calculation of statutory bonus. For example: My Basic + DA is Rs. 12,000/- and I am working in Delhi where the minimum wages are Rs. 16,000/- for FY 2016-17. So, will the bonus be calculated on Rs. 16,000/- or Rs. 12,000/-? According to the new bonus amendment, the bonus will be calculated on a minimum of Rs. 7,000/- or the state minimum wages, whichever is higher.
From India, New Delhi
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4From India, New Delhi
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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
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From India, Salem
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Dear Pawan ji,
Hope this link would help you to understand better post-amendment. For more information, please visit: https://arghaa.com/news/calculation-...-amendment/439
From India, Chennai
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Hope this link would help you to understand better post-amendment. For more information, please visit: https://arghaa.com/news/calculation-...-amendment/439
From India, Chennai
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Dear Ranjan,
I do not agree with your Example 1. Even if the basic salary is Rs. 6,800, we should consider his basic salary as Rs. 7,000 for the calculation of the bonus as per the amended Bonus Act.
Secondly, in Example 3, the basic salary is incorrectly typed as Rs. 7,000 instead of Rs. 12,662.
Please correct me if I am mistaken.
Regards,
Suresh
From India, Thane
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I do not agree with your Example 1. Even if the basic salary is Rs. 6,800, we should consider his basic salary as Rs. 7,000 for the calculation of the bonus as per the amended Bonus Act.
Secondly, in Example 3, the basic salary is incorrectly typed as Rs. 7,000 instead of Rs. 12,662.
Please correct me if I am mistaken.
Regards,
Suresh
From India, Thane
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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
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From India, Mumbai
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Santosh,
How will you arrive at the minimum bonus amount of Rs.7,000/- when the bonus percentage is 8.33% and the employee's basic salary is Rs.6,000/-? Is there any special mathematical mechanism for this? If not, then we have to consider a basic salary of Rs.7,000/- in order to reach the minimum bonus amount of Rs.7,000/-.
For example, Ashok is drawing a basic salary of Rs.4,000/- per month. In this case, he will be entitled to receive an 8.33% bonus of Rs.4,000/- if he worked the whole financial year without any loss of pay. To pay him a bonus amount of Rs.7,000/-, he should be given a 14.585% bonus on Rs.4,000/-.
Instead of conducting this type of reverse calculation for employees earning a basic salary less than Rs.7,000/-, consider such cases as if they were drawing a salary of Rs.7,000/- per month when the bonus percentage is 8.33%.
Suresh
From India, Thane
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How will you arrive at the minimum bonus amount of Rs.7,000/- when the bonus percentage is 8.33% and the employee's basic salary is Rs.6,000/-? Is there any special mathematical mechanism for this? If not, then we have to consider a basic salary of Rs.7,000/- in order to reach the minimum bonus amount of Rs.7,000/-.
For example, Ashok is drawing a basic salary of Rs.4,000/- per month. In this case, he will be entitled to receive an 8.33% bonus of Rs.4,000/- if he worked the whole financial year without any loss of pay. To pay him a bonus amount of Rs.7,000/-, he should be given a 14.585% bonus on Rs.4,000/-.
Instead of conducting this type of reverse calculation for employees earning a basic salary less than Rs.7,000/-, consider such cases as if they were drawing a salary of Rs.7,000/- per month when the bonus percentage is 8.33%.
Suresh
From India, Thane
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Dear friends,
At times, a multiplicity of clarifications renders the confusion worse confounded. Therefore, let us first examine Section 12 of the Payment of Bonus 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 an 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 the 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
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At times, a multiplicity of clarifications renders the confusion worse confounded. Therefore, let us first examine Section 12 of the Payment of Bonus 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 an 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 the 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
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I do agree the provisions and narration by Mr Umakanthanji. Hope we should follow the provisions.
From India
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From India
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i want to know what is the maximum limit for bonus for central govt employee.
From India, Delhi
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From India, Delhi
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