Bonus Act [Thread 334082]

Suppose an employee is getting
basic - 5000
site allowance - 3000
d.a. - 5000
h.r.a - 2500
fooding allowance- 2000
mobile allowance - 1000
total - rs. 18500
pls suggest how to calculate bonus in this case...

Dear Kishanu
You said that suppose an employee is getting Rs. 5000/- basic and Rs. 5000/- as DA, means employee is getting Rs. 10,000/- as salary. Now the Bonus limited is Rs. 3500/- and 10,000/- and minimum 8.33%, you have to consider the salary of the employee Rs. 3,500/- per month minimum as per the Payment of Bonus Act. calculate his salary on Rs. 3500/- per month for completed financial year and it will come to Rs. 42000*8.33%= Rs.3498.6. The employee is entitled for Rs. 3498.6 for the financial year.

8.33 is the percentage form of 1/12. Accordingly 8.33% is equal to 3500x12x1/12 = 3500 itself, not 3498.6.
Abbas.P.S

if employees salary is Rs.6500/- and he is on leave without for one day. So his salary is deduct Rs.250/- and he take Rs.6250/-. In this case one day salary deduct from the bonus salary Rs.3500/- for bonus calculation, means Bonus is payable on Rs.3365/- ?

Dear Mr. Mukesh you have stated tat bonus limited is 3500 and 1000. So what we should do with this 10000

Dear
The employee, who is drawing Rs. 10000/- as basic plus DA you should tread his salary Rs. 3,500/- only not Rs. 10000/-. Further, who is drawing Rs. 10500/- as basic plus DA, then the management is not bound to give that employee benefit of bonus.

No this is wrong, as the salary limit for calculation is caped bonus is Rs 3500/- /pm under Bonus Act in case employee is getting more then 35,00/- to 10000/-. in your case also the slary is more than that. so even iif employee was absent without leave. still his salary for the calculation for Bonus will be Rs 3500/- as already getting more than that. It is correct position of law, there are number of judgment on this point.
Regards

To substantiate the above statement either you quote the provision of the Bonus Act or the the concerned judgements. Till then Mr. Mukesh Azad's stand will be treated as right.
Abbas.P.S