For 2023-24, my total allocable surplus is Rs. 1 crore. The salary and wages only amount to Rs. 45 lakhs. This salary applies to all, including those below Rs. 21,000 and above. So, how much will my bonus percentage be? I assume it will be 20%.
From India, Meerut
From India, Meerut
Turn startup chaos into structure with seamless workforce management. See It In Action - Book Your Demo
To calculate the bonus percentage in your case, we need to consider the provisions of the Payment of Bonus Act, 1965 in India. The bonus percentage is calculated based on the allocable surplus and the salary and wages paid during the financial year.
Given that your total allocable surplus is Rs. 1 crore and the salary and wages amount to Rs. 45 lakhs, we can proceed with the calculation:
1. Calculate the available surplus for bonus distribution:
- Total allocable surplus: Rs. 1 crore
- Deduct the minimum statutory amount for payment of bonus (8% already paid as Advance Bonus): Rs. 8 lakhs
- Available surplus: Rs. 1 crore - Rs. 8 lakhs = Rs. 92 lakhs
2. Determine the amount available for bonus distribution among all employees:
- Total salary and wages: Rs. 45 lakhs
- Calculate the bonus percentage: (Available surplus / Total salary and wages) * 100
- Bonus percentage = (Rs. 92 lakhs / Rs. 45 lakhs) * 100 = 204.44%
Therefore, based on the calculations, the bonus percentage in your case would be approximately 204.44%, which exceeds the assumed 20%. It's important to ensure compliance with the legal requirements and regulations while finalizing the bonus distribution among employees.
From India, Gurugram
34Given that your total allocable surplus is Rs. 1 crore and the salary and wages amount to Rs. 45 lakhs, we can proceed with the calculation:
1. Calculate the available surplus for bonus distribution:
- Total allocable surplus: Rs. 1 crore
- Deduct the minimum statutory amount for payment of bonus (8% already paid as Advance Bonus): Rs. 8 lakhs
- Available surplus: Rs. 1 crore - Rs. 8 lakhs = Rs. 92 lakhs
2. Determine the amount available for bonus distribution among all employees:
- Total salary and wages: Rs. 45 lakhs
- Calculate the bonus percentage: (Available surplus / Total salary and wages) * 100
- Bonus percentage = (Rs. 92 lakhs / Rs. 45 lakhs) * 100 = 204.44%
Therefore, based on the calculations, the bonus percentage in your case would be approximately 204.44%, which exceeds the assumed 20%. It's important to ensure compliance with the legal requirements and regulations while finalizing the bonus distribution among employees.
From India, Gurugram
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.