Please solve my problem related to the number of working days in a year. As Form C of the Bonus Act has a column for the Number of working days in a year, what entry should be made in this column, whether 365 or 306 (after deducting Sunday and national and public festival holidays)? My company calculates salary by dividing the salary by 30 or 31 (as the case may be) and multiplying it by the number of working days of the employee.
Additionally, my company remains closed on Sundays and all national and festival holidays. So, the confusion lies in how to calculate the bonus of employees: the number of actual days worked by the employee/365*84000 or the number of actual days worked by the employee/306*84000, followed by calculating 8.33% of the resultant amount. Please share your views.
From India, Chandigarh
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144Additionally, my company remains closed on Sundays and all national and festival holidays. So, the confusion lies in how to calculate the bonus of employees: the number of actual days worked by the employee/365*84000 or the number of actual days worked by the employee/306*84000, followed by calculating 8.33% of the resultant amount. Please share your views.
From India, Chandigarh
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The number of working days shall only mean the days for which wages were paid. In respect of employees who are monthly paid, it will be 365, and in respect of daily rated employees, it shall depend upon the physical days worked.
The column 6 (no. days worked in the year) shall mean the number of days for which wages have been paid to each employee. You can include the days including the weekly off, holidays, paid leaves here because the column is to establish that the worker has worked for at least 30 days, and it should include weekly off and holidays provided they are paid days.
In the case of an employee who has not taken any leave without pay, the number of days worked will be 365. Then, at the top, after the name of the establishment, for "number of working days in a year," you cannot write 306, i.e., days excluding holidays/weekly off days. It should be 365 only; otherwise, column 6 will not match.
Normally, this register is not maintained by many organizations. When we have a system of paying any amount, let it be salary or bonus, through the bank, there is no significance for this register. It is practically not possible to get the signature of each employee in the register. At the same time, you should have a bonus calculation sheet reflecting the details mentioned in the form C. That would be sufficient.
From India, Kannur
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The column 6 (no. days worked in the year) shall mean the number of days for which wages have been paid to each employee. You can include the days including the weekly off, holidays, paid leaves here because the column is to establish that the worker has worked for at least 30 days, and it should include weekly off and holidays provided they are paid days.
In the case of an employee who has not taken any leave without pay, the number of days worked will be 365. Then, at the top, after the name of the establishment, for "number of working days in a year," you cannot write 306, i.e., days excluding holidays/weekly off days. It should be 365 only; otherwise, column 6 will not match.
Normally, this register is not maintained by many organizations. When we have a system of paying any amount, let it be salary or bonus, through the bank, there is no significance for this register. It is practically not possible to get the signature of each employee in the register. At the same time, you should have a bonus calculation sheet reflecting the details mentioned in the form C. That would be sufficient.
From India, Kannur
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BONUS FORM-C.xls
Bonus Act-FORM-D.doc