Hello,
For calculation of Bonus under Payment of Bonus Act, should we consider minimum wages as per current location of the employee or should we consider the location where the employee was based during the period for which bonus is being paid. For example, there is an employee who is transferred from Hyderabad to Chennai in Sept 2017 and if are paying bonus for the year 2017-17, then should we consider the minimum wages for Hyderabad or Chennai? Please clarify.
From India, Noida
2For calculation of Bonus under Payment of Bonus Act, should we consider minimum wages as per current location of the employee or should we consider the location where the employee was based during the period for which bonus is being paid. For example, there is an employee who is transferred from Hyderabad to Chennai in Sept 2017 and if are paying bonus for the year 2017-17, then should we consider the minimum wages for Hyderabad or Chennai? Please clarify.
From India, Noida
Dear Ganesh,
Bonus is a deferred payment since it is being paid any time during the year immediately following the Accounting Year for which bonus is calculated. Therefore, logically it should be a certain percentage on the earnings of the employee pertaining to the AY only. It follows automatically that minimum rates of wages pertaining to the locality where the employee worked during the AY only should be taken into consideration and not the location of his employment at the time of calculation/disbursement of bonus..
From India, Salem
Bonus is a deferred payment since it is being paid any time during the year immediately following the Accounting Year for which bonus is calculated. Therefore, logically it should be a certain percentage on the earnings of the employee pertaining to the AY only. It follows automatically that minimum rates of wages pertaining to the locality where the employee worked during the AY only should be taken into consideration and not the location of his employment at the time of calculation/disbursement of bonus..
From India, Salem
Hi,
This is to inform you that, bonus needs to be calculated on the basis of "seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher". Thus you may use the same process which you are following to all the employees keeping in mind the said stipulation.
This is to inform you that, bonus needs to be calculated on the basis of "seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher". Thus you may use the same process which you are following to all the employees keeping in mind the said stipulation.
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Delhi - Minimum Wages w.e.f. 01.10.2012 (1).pdf
Minimum Wages in Maharashtra for the period January 2018 to June 2018.xls