7,000*20% = 1400 per month
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: 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. Hello, in this post we have discussed the payment of bonuses under the Bonus Act. how calculate my bonus over my salary 16000 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.
The payment of the bonus act applies to the whole of India. The Provision of this act applies to the following factories/establishments/companies:- 6500*8.33% = 541.45 (6497.4 per annum) Siddharth is working as a Sales officer in one of the shops in Delhi. His basic salary is Rs. 18,000 per month. Relyon Softech Ltd. #73, 2nd Floor, Shreelekha Complex, WOC Road Mahalaxmipuram, Bangalore-560086. Rahul is working as an engineer in a Company in Bangalore. His basic salary is Rs. 6,500 per month. New Update:
You can find the attachment on the Payment of Bonus Act, 2015 here. Auto-calculate bonus for eligible employees and generate Form C 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. 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. if working day is 70 & salary is below 18000 then what should be bonus amount according to 20% limit??