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Calculation of Bonus as per Bonus Act (Amendment of 2015) If the gross earning of your employees is below Rs.21000 you are eligible to pay a bonus. Calculation of bonus will be as follows:
The Payment of Bonus Act, 1965 provides for a minimum bonus of 8.33 percent of wages. The salary limited fixed for eligibility purposes is Rs. 3,500 per month and the payment is subject to the stipulation that the bonus payable to employees drawing wages or salary not exceeded to Rs.10000 per month would be calculated as if their salary or ...
Sep 21, 2020 · Sub-clause (d) of section 14 of the Payment of Bonus Act provides that for the purpose of section 13 pertaining to proportionate reduction in bonus in certain cases, the employee who has been on maternity leave with salary, will be treated as if she is in the employment hence bonus will be payable. Sponsored.
Jun 27, 2024 · Statutory Bonus in India is paid as per Payment of Bonus act (1965). The bonus rate is between 8.33% and 20% based on the ‘available surplus’ as mentioned in the act. Bonus is essentially deferred earnings, and some companies choose to pay it out in advance. What disqualifies you to receive a bonus?
THE PAYMENT OF BONUS ACT, 1965. (21 OF 1965) [25th September, 1965.] [An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.]
Dec 6, 2019 · Under the given Act, the procedure for the computation of the bonus has been delineated, however, in certain circumstances, the payment of the bonus is linked with the productivity and production of the given employee.
Calculation of bonus: As per the amendment on the Payment of Bonus Bill passed in 2015, when wages or salary exceeds ₹7000 or the minimum wages fixed by the government, bonus will be payable on ₹7000 or the minimum wages as fixed by govt., whichever is higher. Examples: Salary (Basic + DA) = ₹6000, Min Wages = ₹8000, Bonus will be payable on ₹8000.
The Payment of Bonus Act, 1965 provides for the payment of bonus to persons employed in certain establishments, employing 20 or more persons, on the basis of profits or on the basis of production or productivity and matters connected therewith. The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act.
impose a statutory obligation on an employer of every establishment covered by the Act to pay bonus to employees in the establishment; lay down principle and formula for calculation of bonus; provide for payment of minimum and maximum bonus and linking the payment of bonus with the scheme of set-on and set-off; and.
The calculation of statutory bonus involves several factors, including the employee’s salary or wage, minimum wages, and the company’s allocable surplus. Here’s a detailed breakdown: 1. Salary Consideration: The bonus is calculated on the salary or wage earned by the employee.
