Bonus on pro rata
PRADEEP SHARMA
(Querist) 13 October 2014
This query is : Resolved
Respected Sir,
I'm doing work in a man power services provider team,
i did calculate the bonus as per below details.
=if(basic earning=>3500,3500*20%,basic*20%), so maximum Rs.700 per month, so yearly calculated 8400 maximum per person.
but now principal employee told me that. it will be calculate on employee working days as per bellow details.
Bonus working is as follows :-
1. Pro-rata Basis ( Nos of days, In paid basis)
2. 20% on earned basis or Rs.700/- whichever is lower.
Example :-
1 ABC monthly earned basis for 30 days Rs. 6000/- Bonus will be calculated 6000 x 20% = 1200 but pay out for Rs.700/- ( As per Policy)
2. ABC monthly earned basis for 20 days Rs. 4000/- Bonus will be calculated 4000 x 20% = 800 it is more than Rs.700/- but pay out for ( Rs.700/- / 30 X 20 = 467) ( As per Pro-rata)
3. ABC monthly earned basis for 10 days Rs. 2000/- Bonus will be calculated 2000 x 20% = 400 it is less than Rs.700/- but pay out for ( Rs.400/- / 30 X 10 = 133) ( As per Pro-rata)
so please guide me. have any clause or law in bonus act such type pro rata bonus paid.
Thanks
Kumar Doab
(Expert) 13 October 2014
For an employee to be eligible for Bonus in an accounting year he/she should have worked in the establishment in that year for at least 30 days.
Payment of Bonus Act;Sec2(13),8
Calculate Bonus on the no. of days worked in
an accounting year.
