2. Bonus????
Bonus to be paid under Payment of Bonus Act, 1965 is to be
calculated as under:
1. It depends upon the percentage on which your company wants
to give bonus to its employees. Minimum bonus is 8.33% of basic
salary earned during the accounting year and Maximum is 20%
under the payment of Bonus Act, 1965.
2. Eligibility: Bonus under Payment of Bonus Act,1965 is required to
be to employees whose salary ( Basic) is of less than Rs.3500.00 per
month during the accounting year for which bonus is to be paid.
3. Bonus is to be calculated for eligible employees assuming salary
(Basic) as Rs.2500.00 per month or less, if, it is less then Rs.2500.00
4. Multiply the yearly sum of salary thus worked out as per above
clause 3 with rate of bonus. The figure is bonus payable to
employee under the act.
3. Contd...
BONUS CALCULATION PARAMETERS
CASE 1 BASIC LESS THAN EQUAL TO 3500 = BONUS=ACTUAL BASIC X
(BONUS MONTHS) X 20%
CASE 2 BASIC MORE THAN 3500 UPTO 8400 = BONUS=Rs. 3500 X (BONUS
MONTHS) X 20%, EXGRATIA=0
CASE 3 BASIC MORE THAN 8400 & LESS THAN 10000 = BONUS=Rs. 3500 X
(BONUS MONTHS) X 20%, EXGRATIA= BASIC SALARY-8400
CASE 4 BASIC MORE THAN 10000 = BONUS = 0, EXGRATIA= 1 MONTH
BASIC SALARY
CASE 5 BASIC CHANGES DURING YEAR
EX: 2300 to 3500 = BONUS=(2300Xmonths paidX20%) + (3500Xmonths
paidX 20%), exgratia=0