**Cite.Co**is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network

how we calculate bonus if emp getting basic and da 4000 and his gross salary is 10000. is he eligible? if yes then how we calculate

From India , Patiala

From India , Patiala

how we calculate bonus if emp getting basic and da 4000 and his gross salary is 10000. is he eligible? if yes then how we calculate

Hi,

He is eligible to get bonus.

Calculation:

Basix + DA is Rs.4,000.00 pm

Bonus Calculation: 4000x12x8.33%(minimum bonus)

Bonus is Rs.3998.40

Regards,

Velmailv

From India, Coimbatore

Hi,

He is eligible to get bonus.

Calculation:

Basix + DA is Rs.4,000.00 pm

Bonus Calculation: 4000x12x8.33%(minimum bonus)

Bonus is Rs.3998.40

Regards,

Velmailv

From India, Coimbatore

how we calculate bonus if emp getting basic and da 4000 and his gross salary is 10000. is he eligible? if yes then how we calculate

Hi,

He is eligible to get bonus.

Calculation:

Basic + DA is Rs.4,000.00 pm

Bonus Calculation: 4000x12x8.33%(minimum bonus)

Bonus is Rs.3998.40

Regards,

Velmailv

thank You am really satisfied with this reply.... here my Question is bonus calculation as per above 4000x12x8.33% - 4000 is Basic + DA x 12 [(is it a month ???(one year)] x 8.33% declared % .

if it is a month, if an employee joined mid of the year, assume that might joined in the month of August then how do u calculate it ???? pls explain me in detail

Regards,

Pratima.

From India , Bangalore

Hi,

He is eligible to get bonus.

Calculation:

Basic + DA is Rs.4,000.00 pm

Bonus Calculation: 4000x12x8.33%(minimum bonus)

Bonus is Rs.3998.40

Regards,

Velmailv

thank You am really satisfied with this reply.... here my Question is bonus calculation as per above 4000x12x8.33% - 4000 is Basic + DA x 12 [(is it a month ???(one year)] x 8.33% declared % .

if it is a month, if an employee joined mid of the year, assume that might joined in the month of August then how do u calculate it ???? pls explain me in detail

Regards,

Pratima.

From India , Bangalore

**Dear All,**

Need your help friends!!!!

Currently, we have openings for fresher (2-Tech Support, 1 - Java, 2 - .Net, 1 - Lotus Notes). Request you to send me the profiles.So that, we can shortlist the profiles. Based on the profiles, we will call them to attend a interview.

Pls let me know EDLI (insurance). what is the amount to be paid to PF depat?........ and how to define the salary

Thanks

Joe

Need your help friends!!!!

Currently, we have openings for fresher (2-Tech Support, 1 - Java, 2 - .Net, 1 - Lotus Notes). Request you to send me the profiles.So that, we can shortlist the profiles. Based on the profiles, we will call them to attend a interview.

Pls let me know EDLI (insurance). what is the amount to be paid to PF depat?........ and how to define the salary

**structure.**Thanks

Joe

Dear Pratima,

Hope, bonus will nor give for 1 year. In my company, we hv changed the pay structure. (ie.,Basic, hra, da, Spl. all and bonus). So, if sum one joined in mid of the month, we can easily calculate the bonus.

Thanks

Joe

From United States ,

Dear Pratima,

Hope, bonus will nor give for 1 year. In my company, we hv changed the pay structure. (ie.,Basic, hra, da, Spl. all and bonus). So, if sum one joined in mid of the month, we can easily calculate the bonus.

Thanks

Joe

Dear Joe,

Thank u 4 u r reply... above u said bonus will not give for 1year wat is the method ??? how do u conceder ?? what is the method for new joned Emp??

Regards

Pratima

*<link outdated-removed>*

From India , Bangalore

Dear Pratima,

(Basic + DA = Rs.4,000.00) if Basic is Rs.4000 means + add DA amount

X 12 is (one Year)(for taking bonus earnings) X 8.33% declared.

If it is a month, you take Total bonus earnings of an employee who joined

mid of the year (i.e financial year April-Mar) X 8.33% declared %

for an example:

A is joined in Aug 2006 and his basic + Da is Rs.5500.00

Total bonus earnings = 5500(Basic+DA)x8(Aug06toMar07=8months)

= Rs.44000x8.33% declared = Rs.3665.20.

Regards

Velmailv

Bonus deduction is applicable under Sec 18 of the Payment of Bonus Act

1965 for any accounting year an employee is found guilty of misconduct

causing any financial loss to the company.The employer may deduct the amount of loss from bonus payable to him in respect of that accounting

year only.

Regards.

Velmail.V

From India, Coimbatore

(Basic + DA = Rs.4,000.00) if Basic is Rs.4000 means + add DA amount

X 12 is (one Year)(for taking bonus earnings) X 8.33% declared.

If it is a month, you take Total bonus earnings of an employee who joined

mid of the year (i.e financial year April-Mar) X 8.33% declared %

for an example:

A is joined in Aug 2006 and his basic + Da is Rs.5500.00

Total bonus earnings = 5500(Basic+DA)x8(Aug06toMar07=8months)

= Rs.44000x8.33% declared = Rs.3665.20.

Regards

Velmailv

Bonus deduction is applicable under Sec 18 of the Payment of Bonus Act

1965 for any accounting year an employee is found guilty of misconduct

causing any financial loss to the company.The employer may deduct the amount of loss from bonus payable to him in respect of that accounting

year only.

Regards.

Velmail.V

From India, Coimbatore

Hi Ashwani,

As per Bonus Act there is limit for computation of Bonus.

If gross salary is 10000 and below and total Basic+DA+permisable allw. is 4000/-and if employee's attendance is 100% then He/She is entitle to draw Bonus as bellow.

3500 x 12 = 42000/-

Declare rate of Bonus >=20 % or minimum 8.33% to be calculated on above limit of Rs 42000/-

If Bonus % is declared 8.33% then Bonus would be RS 3498.6

If Bonus % is declared 10% then Bonus would be RS4200.00.

Any thing considered above 3500/- limit would be treated as Ex-gratia

Regds,

Haren

From India , Mumbai

As per Bonus Act there is limit for computation of Bonus.

If gross salary is 10000 and below and total Basic+DA+permisable allw. is 4000/-and if employee's attendance is 100% then He/She is entitle to draw Bonus as bellow.

3500 x 12 = 42000/-

Declare rate of Bonus >=20 % or minimum 8.33% to be calculated on above limit of Rs 42000/-

If Bonus % is declared 8.33% then Bonus would be RS 3498.6

If Bonus % is declared 10% then Bonus would be RS4200.00.

Any thing considered above 3500/- limit would be treated as Ex-gratia

Regds,

Haren

From India , Mumbai

Dear All

As per the provisions of the Payment of Bonus Act, all employees whose salary is Rs.10000/- (basic and DA) and below are eligible for bonus.

But, payment of bonus is restricted to Rs.3500/-. This means, even though his salary (basic + DA) is more than Rs.3500/- it should be treated as Rs.3500/- only.

For example, for the employee who gets salary of Rs.4000/-, the salary is to be taken as Rs.3500/- and calculate bonus as below:

Salary x 12 months x percentage of bonus. This means

3500 x 12 x 8.33%

In the case where the monthly salary is less than Rs.3500/-, for calculation the actual salary is to be taken.

The percentage of bonus is arrived at based on the formula of:

Available surplus

Allocable Surplus

Set on and set off - which is explained in the Act. This is based on the profit of the organisation and generally Auditors would be able to guide the HR team to arrive at the percentage.

Thanks

G.Sankaranarayanan

Sans Management Solutions

19th Sep 2008

From India , Madras

As per the provisions of the Payment of Bonus Act, all employees whose salary is Rs.10000/- (basic and DA) and below are eligible for bonus.

But, payment of bonus is restricted to Rs.3500/-. This means, even though his salary (basic + DA) is more than Rs.3500/- it should be treated as Rs.3500/- only.

For example, for the employee who gets salary of Rs.4000/-, the salary is to be taken as Rs.3500/- and calculate bonus as below:

Salary x 12 months x percentage of bonus. This means

3500 x 12 x 8.33%

In the case where the monthly salary is less than Rs.3500/-, for calculation the actual salary is to be taken.

The percentage of bonus is arrived at based on the formula of:

Available surplus

Allocable Surplus

Set on and set off - which is explained in the Act. This is based on the profit of the organisation and generally Auditors would be able to guide the HR team to arrive at the percentage.

Thanks

G.Sankaranarayanan

Sans Management Solutions

19th Sep 2008

From India , Madras

Dear Pratima,

Initially we hv paid like basic, hra, da & spl. allowance. Now, we hv chaged the pay stature as basic, hra, da, spl.all &

For bonus, I have joined before March (financial year). Existing emp.,’s bonus, we can pay it as arrears.

Thanks

Joe

From United States ,

Initially we hv paid like basic, hra, da & spl. allowance. Now, we hv chaged the pay stature as basic, hra, da, spl.all &

**bonus**(we hv included bonus column and added the bonus amt in the bonus stature). If I joined in the month of May. The company will not pay the bonus.For bonus, I have joined before March (financial year). Existing emp.,’s bonus, we can pay it as arrears.

Thanks

Joe

From United States ,

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.

Add the url of this thread if you want to cite this discussion.

Add the url of this thread if you want to cite this discussion.

#Listed In: tech support City-India-Patiala bonus act bonus calculation rate of bonus labour department calculation of bonus minimum bonus payment of bonus act payment of bonus financial year Country-India