How to calculate Employee bonus?

Posted on 20th Jul 2018 | 1290 views

5 avg. rating (100% score) - 1 votes

Employee bonus calculation:

Employee bonus calculation is Salary/wages and dearness allowance (DA) are covered while calculating bonus.Notwithstanding; supplementary allowances such as over-time, house rent, incentive or commission are not incorporated.
Bonus rules for employee

Bonus rules for employee:

Bonus rules for employee is defined as following

In payment of Bonus a fundamental law relating to this policy of awarding bonus to the employee’s and that fundamental law is Payment of Bonus Act, 1965 as per constitution of India

Eligibility: An individual employee who withdraws salary less than Rs. 10000/- per month. And worked for not less than 30 days is eligible for bonus for minimum of 8.33% of the salary/wages. In any case a maximum of 20% of the employee’s wages a payable as bonus in a financial year. Nonetheless in some other cases employees whose salary in between Rs. 3500 to Rs. 10,000 per month for the aim of payment of bonus, their salaries would be regarded to be Rs. 3500. The allotment of bonus is a derived portion from the method prescribed under the Payment of Bonus Act, 1965 The law guarantee even if there is losses occurred in the organization, it is obliged to pay a bonus of minimum of 8.33% and maximum of 20% there are two types Statutory Minimum Bonus and the statutory Maximum Bonus i.e. 8.33% and 20% respectively. Subject to provisions of the act the allotment of bonus varies in these two levels. 31st December 2015 the President of India gave his assent to certain amendments to the Payment of Bonus Act, 1965. The amendments have increased the salary opening for conclusive applicability of the Act from INR 10,000 to INR 21,000 per month. Furthermore the wage ceiling for calculation of bonus has been increased from INR 3500 to INR 7000 per month.

BONUS CALCULATION FOR EMPLOYEE

CALCULATING GROSS PROFIT, AVAILABLE SURPLUS AND THE SURPLUS AND THEN THE PERCENTAGE OF BONUS THAT IS TO BE PAID

MINIMUM % OF BONUS @8.33%

MAXIMUM % OF BONUS @20%

SALARY DEFINITION-MINIMUM WAGES APPLICABLE TO THE EMPLOYEE OR RS 7, 000

WHICHEVER IS HIGHER FINANCIAL YEAR 2017-18 (APRIL TO MARCH) PAYABLE ON OR BEFORE 30TH NOVEMBER, 2018

0 Comments on How to calculate Employee bonus?

Comment as a guest:

All rights reserved © 2020 Wisdom IT Services India Pvt. Ltd DMCA.com Protection Status

<