Dear HR Team,
I work in an aerospace and defence company as a HR Executive, recently few employees whose salary is above the Rs.50000/- left the organization and now I have to make their F&F individually, our salary Components are completely different, show basic as Rs.15000/-, HRA Rs. 7500/- and add in the rest of the amount other components.
Kindly advise how to give them the bonus and gratuity in the final sheet to clear their benefits.
Thank You.
Prudhvi
From India, Hyderabad
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I work in an aerospace and defence company as a HR Executive, recently few employees whose salary is above the Rs.50000/- left the organization and now I have to make their F&F individually, our salary Components are completely different, show basic as Rs.15000/-, HRA Rs. 7500/- and add in the rest of the amount other components.
Kindly advise how to give them the bonus and gratuity in the final sheet to clear their benefits.
Thank You.
Prudhvi
From India, Hyderabad
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To calculate the bonus and gratuity for your employees, you need to follow a few steps. Firstly, note that the Payment of Bonus Act, 1965, applies to every employee drawing a salary of INR 21,000 or less per month. However, the calculation of bonus is based on INR 7,000 or the minimum wage, whichever is higher. As your employees are drawing a salary of INR 50,000, they do not fall under this act, but your organization can still choose to provide a bonus as part of its employee benefits.
Bonus Calculation
If your company decides to give a bonus, the calculation could be based on the basic salary or the gross salary, depending on the policy of the company. Bonus is usually a certain percentage of the salary.
Gratuity Calculation
As for the gratuity, it is calculated based on the formula:
Gratuity = (Basic Salary + Dearness Allowance) x 15/26 x Number of Years of Service
Since you mention the basic salary is INR 15,000, you can use this for the calculation. Note that the gratuity is payable only to employees who have completed five years of continuous service, as per the Payment of Gratuity Act, 1972.
Remember, these are general guidelines and the actual calculations can vary based on company policies and other factors. For more accurate and legal advice, you might want to consult with a labor law expert or use resources from the Ministry of Labour and Employment https://labour.gov.in.
I hope this information helps you in processing the F&F for your employees. However, always refer to your company's policies and consult with a legal expert when in doubt.
From India, Gurugram
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96Bonus Calculation
If your company decides to give a bonus, the calculation could be based on the basic salary or the gross salary, depending on the policy of the company. Bonus is usually a certain percentage of the salary.
Gratuity Calculation
As for the gratuity, it is calculated based on the formula:
Gratuity = (Basic Salary + Dearness Allowance) x 15/26 x Number of Years of Service
Since you mention the basic salary is INR 15,000, you can use this for the calculation. Note that the gratuity is payable only to employees who have completed five years of continuous service, as per the Payment of Gratuity Act, 1972.
Remember, these are general guidelines and the actual calculations can vary based on company policies and other factors. For more accurate and legal advice, you might want to consult with a labor law expert or use resources from the Ministry of Labour and Employment https://labour.gov.in.
I hope this information helps you in processing the F&F for your employees. However, always refer to your company's policies and consult with a legal expert when in doubt.
From India, Gurugram
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Dear Anand-Bathini,
You have to pay the Gratuity and to calculate on Basic @ Rs.15000/- because no DA is exist in the salary components.
The employees left are not eligible for bonus as their salary is above ₹21000. All this is on the basis of information provided by you in post.
This is a very pitiable conditions of employees are paid Basic less than 25/% of the CTC. This is the exploitation of employees.
From India, Mumbai
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You have to pay the Gratuity and to calculate on Basic @ Rs.15000/- because no DA is exist in the salary components.
The employees left are not eligible for bonus as their salary is above ₹21000. All this is on the basis of information provided by you in post.
This is a very pitiable conditions of employees are paid Basic less than 25/% of the CTC. This is the exploitation of employees.
From India, Mumbai
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As far as my knowledge is concerned, the eligibility for bonus is taken if the basic and DA is less than 21000/- and not the gross salary. Rest you can refer the Payment of bonus act.
From India, Jalandhar
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From India, Jalandhar
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(Fact Checked)-You're correct about the bonus eligibility based on basic and DA under the Payment of Bonus Act. Good job on your understanding! (1 Acknowledge point)
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BONUS CALCULATION FOR W.B.Govt employee for 2010-2011.xls
Gratuity calculation.doc
CiteHR.AI
(Fact Checked)-Your information is accurate. Gratuity is calculated on the basic salary and employees earning above Rs.21000/- are not eligible for bonus. Keep up the good work! (1 Acknowledge point)