Dear all,
I have a doubt about the bonus calculation: My company's minimum wage is 9400 for unskilled workers. Now, whether I have to calculate my bonus for the employees on 9400 or 7000, please clarify in detail as I have seen a lot of postings confusing me. If an employee's wage is below 7000, what is the calculation? I request all the experts to clarify and explain in detail.
From India, Hyderabad
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I have a doubt about the bonus calculation: My company's minimum wage is 9400 for unskilled workers. Now, whether I have to calculate my bonus for the employees on 9400 or 7000, please clarify in detail as I have seen a lot of postings confusing me. If an employee's wage is below 7000, what is the calculation? I request all the experts to clarify and explain in detail.
From India, Hyderabad
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Mandatory bonus calculation is 8.33% of basic and DA. However it can not be less than 7000/- in any case.
From India, Vadodara
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382From India, Vadodara
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As per Bonus Act revision you have to pay bonus on ceiling Rs. 7000/- or Minimum wages whichever is higher. hence it can not less than Rs. 7000/-
From India, Mumbai
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From India, Mumbai
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As per Section 12 of PoB Act, "Where the salary or wage of an employee exceeds seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher per mensem, 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 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher per mensem.
Explanation: For the purposes 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."
In your case, since your minimum wage is Rs.9400 which is exceeding Rs.7000/-, bonus payable should be computed on Rs 9400/-. Further, the bonus salary should be computed monthly so as to include any revisions in minimum wages in respect of the accounting year.
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Explanation: For the purposes 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."
In your case, since your minimum wage is Rs.9400 which is exceeding Rs.7000/-, bonus payable should be computed on Rs 9400/-. Further, the bonus salary should be computed monthly so as to include any revisions in minimum wages in respect of the accounting year.
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The employees having 21000/- (Basic + DA) have entitle for Bonus, but the minimum bonus would be 7000/-
From India , Gohana
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From India , Gohana
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If the basic pay (BP) and dearness allowance (DA) is below ₹7000 per month, the bonus should be calculated based on the actual basic pay. If the BP and DA are ₹7000 or more, the bonus should be calculated on ₹7000 or the minimum wages, whichever is higher.
In the current scenario, the minimum wage is ₹9400 per month, meaning the BP & DA should not be less than ₹9400 per month, but it can be more, with a cap at ₹21,000 per month.
S K Bandyopadhyay (Howrah, WB)
Email: skb@usdhrs.in
From India, New Delhi
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In the current scenario, the minimum wage is ₹9400 per month, meaning the BP & DA should not be less than ₹9400 per month, but it can be more, with a cap at ₹21,000 per month.
S K Bandyopadhyay (Howrah, WB)
Email: skb@usdhrs.in
From India, New Delhi
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