Hii Seniors, Please help me to know the typs of bonus & which are mandatory for factories
From India, Ahmedabad
From India, Ahmedabad
If yours is a factory and have completed five years since commencement or have made profit then bonus as per Payment of Bonus Act is mandatory for your establishment. It is payable at least at the rate of 8.33% of the earned gross wages of employees whose salary does not exceed Rs 21000 per month. For calculation part and further understanding please follow the thread below mentioned.
https://www.citehr.com/647162-small-doubts-bonus-pay-basic-wage-da.html
The above thread will give you a fair idea about the computation of bonus. Please go through the entire posts thoroughly.
From India, Kannur
4200https://www.citehr.com/647162-small-doubts-bonus-pay-basic-wage-da.html
The above thread will give you a fair idea about the computation of bonus. Please go through the entire posts thoroughly.
From India, Kannur
What Mr. Madhu T K has been explained above, I would like to add the following.
Type of bonus which is mandatory for any factory is Bonus as per payment of Bonus Act ( PB Act ). Bonus calculation has two items. One is the quantum of bonus to be calculated for payment across the board vary between 8.33% to 20% and another is individual employees bonus calculation.
For determining the quantum of bonus it is based on Gross Profit from the Balance sheet of the organization, Available surplus, Allocable surplus, Set on & Set off. In PB Act there is detailed description of how to determine all above.
Bonus is a deferred wages as such eligibility of employees for bonus for a particular financial year is depend on the employees Basic & DA for the previous financial year. If it is 21,000/- or less, the employee is eligible for bonus provided he/she has at least 30 days present in the financial year. For calculation of individual bonus amount it has to be checked what was the Basic and DA of the employee in the previous year. IF it is below 7000/-, the calculation will be on the basis of actual but if the amount is 7000/- or more , then it should be on the basis of 7000/- or minimum wages which ever is higher. The final individual calculation will be completed after adjustment of without pay days of the particular employees.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
Type of bonus which is mandatory for any factory is Bonus as per payment of Bonus Act ( PB Act ). Bonus calculation has two items. One is the quantum of bonus to be calculated for payment across the board vary between 8.33% to 20% and another is individual employees bonus calculation.
For determining the quantum of bonus it is based on Gross Profit from the Balance sheet of the organization, Available surplus, Allocable surplus, Set on & Set off. In PB Act there is detailed description of how to determine all above.
Bonus is a deferred wages as such eligibility of employees for bonus for a particular financial year is depend on the employees Basic & DA for the previous financial year. If it is 21,000/- or less, the employee is eligible for bonus provided he/she has at least 30 days present in the financial year. For calculation of individual bonus amount it has to be checked what was the Basic and DA of the employee in the previous year. IF it is below 7000/-, the calculation will be on the basis of actual but if the amount is 7000/- or more , then it should be on the basis of 7000/- or minimum wages which ever is higher. The final individual calculation will be completed after adjustment of without pay days of the particular employees.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.