Dear Sir,
I have a confusion in Bonus calculation suppose if an employee is having Rs 8000 basic salary then can we take Rs 3500 as maximum and calculate 8.33% of 3500 as bonus i.e 3500*12*8.33/100=Rs 3499
Please guide me
From India, Bangalore
I have a confusion in Bonus calculation suppose if an employee is having Rs 8000 basic salary then can we take Rs 3500 as maximum and calculate 8.33% of 3500 as bonus i.e 3500*12*8.33/100=Rs 3499
Please guide me
From India, Bangalore
There are two components in respect of calculation of bonus.
1) Eligible limit: An employee who draws a basic salary of Rs.10000/- is eligible to get bonus in the respective financial year.
2) Applicable limit: An employee though he draws salary less than 10K bonus is applicable to only Rs.3500/-
In your case, what you have calculated is right.
From India, New Delhi
211) Eligible limit: An employee who draws a basic salary of Rs.10000/- is eligible to get bonus in the respective financial year.
2) Applicable limit: An employee though he draws salary less than 10K bonus is applicable to only Rs.3500/-
In your case, what you have calculated is right.
From India, New Delhi
Your above calculation is almost correct, but a small error happened. 8.33% is the percentage convertion of 1/12. Accordingly the calculation of Bonus is 3500x12x1/12 = 3500, not 3499. Abbas.P.S
From India, Bangalore
From India, Bangalore
Dear All,
I need one more clarity that is the basic wage criteria on the following cases
1. if an employee is having a basic wage of Rs 2400,will he be eligible for Rs 2500 for calculating bonus
2. if an employee is having a basic wage of Rs 3800,we will be considering Rs 3500 for calculating bonus
Please correct if am wrong
From India, Bangalore
I need one more clarity that is the basic wage criteria on the following cases
1. if an employee is having a basic wage of Rs 2400,will he be eligible for Rs 2500 for calculating bonus
2. if an employee is having a basic wage of Rs 3800,we will be considering Rs 3500 for calculating bonus
Please correct if am wrong
From India, Bangalore
The salary for calculation will be actual subject to ceiling of Rs. 3500 per month. Accordingly 2400 will be treated as 2400 itself. 3800 will be treated as 3500. Abbas.P.S
From India, Bangalore
From India, Bangalore
Hi
Bonus is paid to employee who has worked for more than 30days.
Bonus can be paid as per profitability of the company. If company is making good profit then bonus can be paid accordingly. Generally company will pay one month Basic+DA or one month Gross (Generally IT companys).
As per statutory there is celing for Bonus 3500 (Basic+DA) on this 8.33% is paid. Even if Basic + DA is more than 3500 but less than 10000 employee can be paid based on 3500/- celing.
As per statutory those who draw Basic+DA more than 10000, are not eligilbe for Bonus.
From India, Bangalore
Bonus is paid to employee who has worked for more than 30days.
Bonus can be paid as per profitability of the company. If company is making good profit then bonus can be paid accordingly. Generally company will pay one month Basic+DA or one month Gross (Generally IT companys).
As per statutory there is celing for Bonus 3500 (Basic+DA) on this 8.33% is paid. Even if Basic + DA is more than 3500 but less than 10000 employee can be paid based on 3500/- celing.
As per statutory those who draw Basic+DA more than 10000, are not eligilbe for Bonus.
From India, Bangalore
Sir, That means upto 3500(i.e upto 3499 we will calculate bonus on 3499*8.33%*12) and above 3500 we will lock in3500.
From India, Bangalore
From India, Bangalore
Regarding minimum bonus the above calculation is correct. But bonus is payable upto 20% in accordance with the allocable surplus. Abbas.P.S
From India, Bangalore
From India, Bangalore
Dear HR Can any one explain me about Allocable surplus........... Wait for valuable reply With regards Amit Trada
From India, Ahmadabad
From India, Ahmadabad
After applying (or deducting) direct taxes, depreciation, developmental rebate etc. on gross profit, the available surplus will be arrived.
For Companies other than Banking Institutions, allocable surplus is 67% of available surplus. For other establishments it will be 60%.
Abbas.P.S
From India, Bangalore
For Companies other than Banking Institutions, allocable surplus is 67% of available surplus. For other establishments it will be 60%.
Abbas.P.S
From India, Bangalore
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf