Bonus Act - Applicability

Dear Sir,

If an employee is drawing a monthly Rs 9000 as salary without DA how is his bonus calculated?

Is the bonus to be paid the maximum of RS 3500 or

8.3 % of his annual salary i.e

9000 Rs X 12 = 108000 x 8.3/100 = Rs 8964

Please clarify.

Thankyou

A..A.Naidu

Since the salary is more thatn Rs 3500 pm, Bonus will be calculated on Rs 3500/ only.Assumed the employee worked all days in a year without any loss of pay and managment has decided to pay Rs 8.33% bonus the following will be calculation.

The calculation will be Rs 3500 X 12 X8.33% which works out to Rs 3500.

If the management decides to pay 20% bonus the calculation will be

Rs 3500X12X20%= Rs 8400.

Actual wages (Basic + DA) earned to be considered. If any one recieves less salary due to absence the bonus also will get reduced proportionately.

For example a person who is drawing Rs 10000 per month has earned less than Rs 10000 in one month.The salary for that month to be calculated as Rs 3500/26Xno of days worked in that month.

Dear Radhakrishna ji,

If an employee worked in a particular year i.e. from 01st April, to 31st March with 262 days and his annual gross salary is Rs.57534/- in that case what is his eligible Bonus ?

Regards,

PBS KUMAR

Since your querry needs further expansion/further details to answer, I give below a template. You  may add no of days worked for each month and % of bonus payable in the respective columns to arrive at figure of bonus.Also see the template in excel file.

Dear Mr. Radha Krishna ji,

Your attachment is may by corrupted please post it again.

Regards,

PBS KUMAR

uploaded.

Dear friends,

Please clerify whether the resigned employee will fall under the purview of  definition "employee" of the payment of Bonus Act 1956.

Dear Rashmita ji,

An "Employee" under this act says who worked during that particular financial year when the Bonus has declared.

Please see further clarifications which our friends given in this web site.

Regards,

PBS KUMAR

Res. Radha Krishan Jee,

Good Evening,

Sir, I read your attachment regarding Bonus Calculation, If salary calculate as per month days(Basic*Paid Days/Month Days) Than re calculate as per your attachment ,

Regards

Wheather for calculation for payment of bonus amount will attract (include) Earn Leave, Sick Leave or any other leave ?

My company has been paying bonus (equal to one month's pay) to our employees for years now. We were not aware of the applicability of the bonus act. Only recently, we have come to know of it. The applicability that my new HR man has told me is pretty much the same as indicated earlier in this forum. 3500 upto 10000 and then nothing.  I have about 80 ppl working for me, 50 below 10000 and 30 above but all are above 3500. The bonus payments which we have been giving have always been given as cheque payments and all workers have recd. a copy of their yearly vouchers which clearly describe this as bonus.

1) Can we suddenly stop giving out the bonus altogether for the ppl above 10000 and make it 3500 for those below 10000? 

2) Can we get into legal labour court dispute for that? I can very much believe that there would be some resistance to taking such a step but I can negotiate with a better payhike that since my bonus payments coincide with the annual wage increments.

3) Can someone argue that since it was being given in the past, it needs to be continued in the future as well?

Pls reply, urgent.

Is Bonus is part of wages under minimum wages act, if it is part of the employemnt contract

Regards

P R Jain