Bonus percentage of salary in india

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Every employee drawing not less than Rs. 21,000/- per month and who has worked for not less than 30 days in an accounting year shall be eligible for the Bonus. Every employee will be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than 30 working days in that year.

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You can find the attachment on the Payment of Bonus Act, 1965 here. how calculate my bonus over my salary 16000 In this post, we will cover the following: Over a period of 20 years, Relyon with its “Saral” products has been striving to serve various industries to simplify the activities in Tax & efiling, Payroll & Accounts domain. The payment of bonus act will not apply to the following section of employees: Hi Arvind, Bonus will be calculated on no. of months declared by employer & not on no. of days. i.e., 7000*20%*no. of months declared. Here, 7000 is taken as salary is above 7000 and below 21000

Previously, the maximum bonus payable was 20% of Rs 3500 per month. The minimum bonus payment was capped at 8.33% of Rs 3500 per month or Rs 100, whichever is higher. The calculation ceiling of Rs 3500 is currently doubled to Rs 7000 per month “or the minimum wage for the scheduled employment, as fixed by the appropriate Government” (whichever is higher). Therefore, the cost associated with bonus payments could be double, based on the organization’s performance. New Update: Rahul is working as an engineer in a Company in Bangalore. His basic salary is Rs. 6,500 per month. There is no bonus applicable to employees having a basic salary of more than Rs 21,000. 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: Relyon Softech Ltd. #73, 2nd Floor, Shreelekha Complex, WOC Road Mahalaxmipuram, Bangalore-560086.

Hi, In India, there is a principle law relating to the procedure of payment of bonus to the employees and that law is named as Payment of Bonus Act, 1965. Siddharth is working as a Sales officer in one of the shops in Delhi. His basic salary is Rs. 18,000 per month.

Sometimes, managing payroll is tough. There are so many moving pieces and multiple perspectives to think about. From managing employees to ensuring compliance, from syncing attendance with payroll to generating payslip and depositing salary in bank, payroll processing can be a handful job. 6500*8.33% = 541.45 (6497.4 per annum) Formula: Basic Salary*20% = Bonus per month When an employee is not eligible for the statutory bonus, but the company wants to share the bonus, it can be given as ex-gratia. Hello, in this post we have discussed the payment of bonuses under the Bonus Act.

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One thought on “Bonus percentage of salary in india

  • 28.11.2021 at 23:36

    It is interesting. You will not prompt to me, where to me to learn more about it?

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