Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 9 years ago

how to calculate bonus?

myself is trying to ener a company's HR matters and I would like to know about bonus calculation

1 Answer

Relevance
  • Anonymous
    9 years ago
    Favorite Answer

    Now bonus is payable to those whose salaries per month do not exceed Rs 10000(not Rs 3500). For those whose salary is in between Rs 3500 and Rs 10000, bonus will be calculated treating the salary as Rs 3500.

    8.33% is the statutory bonus payable to those who are eligible for bonus and 20% is the maximum bonus. The rate of bonus will depend upon the profit available for the same. In the PPT of Millet the procedure is explained. However, in practice and where the trade unions are very strong, these steps will not work in practice. The rate will be negotiated and the rate affordable to the company will be declared.

    If bonus @ 12% has been agreed then take the Basic + DA salary of individual employee for the year and then take 12% of it to arrive at the amount of bonus. Donot take one month salary and multiply it by 12 (months) to get the aggregate salary because there may be months with lesser salary due to LOP/ ESI leave. For those whose pay are more than 3500 but not more than Rs 10000, calculate the bonus as if the monthly salary is Rs 3500 (Basic + DA)

Still have questions? Get your answers by asking now.