As per the amendment to the Payment of Bonus Bill passed in 2015, when wages or salary exceed ₹7000 or the minimum wages fixed by the government, the bonus will be calculated based on ₹7000 or the minimum wages, whichever is higher.
My question is whether it is permissible to calculate the statutory bonus as 8.33% of the actual Basic + DA when the Basic + DA meets the minimum wages requirement. For example, if the minimum wages (Basic + DA) is ₹11,694 and the actual Basic + DA of an employee is ₹16,000, can I calculate the bonus as 8.33% of ₹16,000? Please confirm.
From India, Madurai
My question is whether it is permissible to calculate the statutory bonus as 8.33% of the actual Basic + DA when the Basic + DA meets the minimum wages requirement. For example, if the minimum wages (Basic + DA) is ₹11,694 and the actual Basic + DA of an employee is ₹16,000, can I calculate the bonus as 8.33% of ₹16,000? Please confirm.
From India, Madurai
No. Since the basic Plus DA exceeds Rs 7000, you can take either Rs 7000 (if your industry has no minimum wages fixed) or the minimum wages fixed, ie, Rs 11694, as bonus qualifying salary. The actual basic plus DA will not be considered unless there is any agreement with the Union to the contrary. At the same time, in an eventuality, if the statutory minimum wages fixed is less than Rs 7000, say Rs 6000, and the actual basic plus Da that you pay is Rs 6700, then the actual basic plus DA will be taken as Bonus qualifying salary. Therefore, actual salary will come in to calculation only when iit is less than Rs 7000 but it is more than the statutory minimum wages fixed by the government. Anyway, such a scenario will not arise because in all sectors the minimum wages is above Rs 10000 across India.
From India, Kannur
4201From India, Kannur
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Amendment to Payment of Bonus Act 2015.jpg
Statutory Compliance of a Industrial or Commercial Unit.xls
Bonus act amendment gazette copy.pdf