Hi Everyone, Looking for clarification - Bonus Calculation in Karnataka
So if my basic is 21000 = bonus will be calculated as 7000rs = 7000*12 = 84000*8.33% = 6997
6997 will be the bonus payable for the particular year. [ Is this statement correct]
__________________________________________________ ____________________
If Basic is 21001 = I am not eligible for the bonus. Then how will the company be able to pay a bonus for me? will it be 1 month basic be paid in this case? Please clarify.
From India, Bengaluru
So if my basic is 21000 = bonus will be calculated as 7000rs = 7000*12 = 84000*8.33% = 6997
6997 will be the bonus payable for the particular year. [ Is this statement correct]
__________________________________________________ ____________________
If Basic is 21001 = I am not eligible for the bonus. Then how will the company be able to pay a bonus for me? will it be 1 month basic be paid in this case? Please clarify.
From India, Bengaluru
Bonus is a deferred wages i.e Bonus for financial year 2020--21 will be payable within 8 months of closing of accounts.Therefore, eligibility criteria should be judged based on salary level during that period not on the basis of current salary. If salary was more than 21,000/ per month during the above financial year, there is no eligibility for Bonus.
For calculation of amount of Bonus, it will be required to check 7000/ or minimum wages whichever is higher and calculation will be based on that level.
% of Bonus ( not always 8.33%) will be determined by calculating available surplus, allocable surplus, set on & set off -- not on adhoc basis.
S K Bandyopadhyay ( WB, Howrah)
CEO- USD HR Solutions
98310 81531
From India, New Delhi
300For calculation of amount of Bonus, it will be required to check 7000/ or minimum wages whichever is higher and calculation will be based on that level.
% of Bonus ( not always 8.33%) will be determined by calculating available surplus, allocable surplus, set on & set off -- not on adhoc basis.
S K Bandyopadhyay ( WB, Howrah)
CEO- USD HR Solutions
98310 81531
From India, New Delhi
As per law if your salary exceeds Rs 21000, you will not be eligible to get Bonus.
As per law, if you come under bonus bracket but your salary exceeds Rs 7000 then bonus can be calculated on Rs 7000 only. However, if the statutory minimum wages notified by the government (of Karnataka) is more than Rs 7000, your bonus should be calculated on that higher amount. Therefore, if the notified minimum wages pertaining to your establishment is, say, Rs 12000, then Bonus should be calculated based on Rs 12000.
The rate of bonus shall depend upon the profitability of the establishment. But once the infancy protection period is over (five years of commencement of year or the year in which the company made profit) the employer is liable to pay minimum bonus of 8.33%. The maximum shall be fixed at 20%
For deciding ineligibility and calculating bonus, the same theory should be applied with regard to bonus qualifying salary. In other words, you cannot take gross salary to make the employee ineligible to get bonus and take only the basic and dearness allowance to calculate the amount of bonus payable.
From India, Kannur
As per law, if you come under bonus bracket but your salary exceeds Rs 7000 then bonus can be calculated on Rs 7000 only. However, if the statutory minimum wages notified by the government (of Karnataka) is more than Rs 7000, your bonus should be calculated on that higher amount. Therefore, if the notified minimum wages pertaining to your establishment is, say, Rs 12000, then Bonus should be calculated based on Rs 12000.
The rate of bonus shall depend upon the profitability of the establishment. But once the infancy protection period is over (five years of commencement of year or the year in which the company made profit) the employer is liable to pay minimum bonus of 8.33%. The maximum shall be fixed at 20%
For deciding ineligibility and calculating bonus, the same theory should be applied with regard to bonus qualifying salary. In other words, you cannot take gross salary to make the employee ineligible to get bonus and take only the basic and dearness allowance to calculate the amount of bonus payable.
From India, Kannur
Dear Team, How do I get the brief details on Statutory Compliances, like returns forms of Bonus, Factory act, CONTRACT LABOUR, PT, PF ESIC etc....
From India, Soron
From India, Soron
Here Rs.7000/ is minimum Bonus wages and % is 8.33% to 20% depends of company surplus.
From India, Mumbai
From India, Mumbai
Rs 7000 is not the minimum Bonus wages but it is the wages on which bonus shall be calculated in respect of any employee whose minimum wages has no been notified by the government. At the same time, if, in respect of any employee, a minimum rate of wages has been fixed by the government, that will be the base for calculating the bonus. For example, suppose yours is a Minor Engineering company and the government has fixed minimum wages of employees employed in such scheduled employment and for a Turner the minimum wages comes to Rs 12000, for example, and in such case, if his actual bonus qualifying salary is Rs 20000, you can calculate it on Rs 12000. In such case it is not to be calculated on Rs 7000 but on the statutory wages, the wages notified by the government, ie, Rs 12000 in the example.
From India, Kannur
From India, Kannur
Hi Madhu sir
If workmen (Hydra Opt) monthly salary is 23000/- and his basic is 4200/-. He is working since 2017. Now he resigned for the job. What are benefits he is eligible ?? How Bonus, Leave pay, service pay calculation. Please tell me sir.
MATTER MOST URGENT.
From India, Warangal
If workmen (Hydra Opt) monthly salary is 23000/- and his basic is 4200/-. He is working since 2017. Now he resigned for the job. What are benefits he is eligible ?? How Bonus, Leave pay, service pay calculation. Please tell me sir.
MATTER MOST URGENT.
From India, Warangal
he should be paid gratuity, salary due ill date of exit and leave encashment on full and final settlement. You can pay the bonus due for 2022-23 along with other employees in Pooja time or Depaavali, as the case may be, at the rate that you decide then.
What do you mean by 'service pay'?
From the data given, I understand that his gross salary is Rs 23000 and his basic salary is only Rs 4300. What are the other components? Will you consider the other components as part of salary for deducting the salary when that employee is on leave without pay? Or is it that only his basic pay is subject to deduction when he takes leave without pay? Why I am asking this is if his 'salary' is Rs 23000, he would be out of coverage of Payment of Bonus Act. At the same time, his gratuity amount should be calculated on the basis of Rs 23000, ie, his salary. Companies usually pay gratuity on basic pay only. Unfortunately, there is nothing in the Payment of Gratuity Act which says that it is payable only on Basic pay. Please follow the link below for further knowledge.
Madhu T K: Payment of Gratuity and Gratuity Qualifying Salary
There are verdicts which say that payment of gratuity should not be on an amount less than minimum wages.
Please give an update of the above.
From India, Kannur
What do you mean by 'service pay'?
From the data given, I understand that his gross salary is Rs 23000 and his basic salary is only Rs 4300. What are the other components? Will you consider the other components as part of salary for deducting the salary when that employee is on leave without pay? Or is it that only his basic pay is subject to deduction when he takes leave without pay? Why I am asking this is if his 'salary' is Rs 23000, he would be out of coverage of Payment of Bonus Act. At the same time, his gratuity amount should be calculated on the basis of Rs 23000, ie, his salary. Companies usually pay gratuity on basic pay only. Unfortunately, there is nothing in the Payment of Gratuity Act which says that it is payable only on Basic pay. Please follow the link below for further knowledge.
Madhu T K: Payment of Gratuity and Gratuity Qualifying Salary
There are verdicts which say that payment of gratuity should not be on an amount less than minimum wages.
Please give an update of the above.
From India, Kannur
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf