Need help for bonus calculation. If few employees at supervisor level have less basic than their juniors then in which category they fall for bonus calculation. Skilled /unskilled
From India, Delhi
Acknowledge(0)
Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Supervisors are in the skilled or highly skilled category. Their salary level is not necessarily connected to their skills. In some cases, the salary of junior employees may surpass that of supervisors due to factors such as experience and age.
For bonus calculation purposes, supervisors should be considered at least at the skilled level of minimum wages.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
Acknowledge(0)Amend(0)
409For bonus calculation purposes, supervisors should be considered at least at the skilled level of minimum wages.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
Acknowledge(0)Amend(0)
Hi, It all depends on the seniority of the employee in the Organization and other factors.
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Bonus is paid as per the agreed calculation formula, as a % of Basic Wages + DA computed annually. For Supervisors and others, the same % and formula could be used as applicable to the workers. This will help in maintaining uniformity and will blunt any criticism of favoritism.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
I think the question is all about the base of "Rs 7000 or the minimum wages fixed, whichever is higher." If so, you can find the wages as per the Minimum Wages notification applicable to supervisors and even managers in it. You can take it. Obviously, if the basic + DA (or the bonus qualifying salary) of all exceeds Rs 7000, you can base your calculation of the bonus on the basis of the minimum wages notification.
From India, Kannur
Acknowledge(0)Amend(0)
From India, Kannur
Acknowledge(0)Amend(0)
Dear Nisha,
If you are referring to Statutory Bonus, the criteria will be governed by the provisions of the Payment of Bonus Act, 1965. Accordingly, an employee who was employed for a minimum of 30 days in the corresponding accounting year and draws wages less than Rs. 21,000/- is eligible for Bonus. The Bonus will be a minimum of 8.33% of the wages earned by him during the accounting year. If he is governed by minimum wages, it will be the minimum wage or Rs. 7000/-, whichever is higher.
If you are referring to any other type of Bonus, such as Performance Bonus or Incentive Bonus, then the same would be governed by your organization's wage and compensation policy.
Regards,
Shailesh Parikh
99 98 97 10 65
Vadodara, Gujarat
From India, Mumbai
Acknowledge(0)Amend(0)
If you are referring to Statutory Bonus, the criteria will be governed by the provisions of the Payment of Bonus Act, 1965. Accordingly, an employee who was employed for a minimum of 30 days in the corresponding accounting year and draws wages less than Rs. 21,000/- is eligible for Bonus. The Bonus will be a minimum of 8.33% of the wages earned by him during the accounting year. If he is governed by minimum wages, it will be the minimum wage or Rs. 7000/-, whichever is higher.
If you are referring to any other type of Bonus, such as Performance Bonus or Incentive Bonus, then the same would be governed by your organization's wage and compensation policy.
Regards,
Shailesh Parikh
99 98 97 10 65
Vadodara, Gujarat
From India, Mumbai
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Level 5 Leadership.pdf
Job Work-outwork employees.docx