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ishita (HR Trainee)     12 October 2009

Bonus Calculation

I have some problems regarding application of bonus act on a corporate entity. So I want a some guidance from your side,

I hereby elaborate the difficulties; I have faced in this respect:

1.       Is the earned salary (basic + DA) per month or total basic salary + DA per month will compare with Rs.3500/- for taking as a base for calculate earned salary per month for the bonus. (For example: If a person’s basic salary + DA in a month is Rs 5000/- and his earned salary for that month is Rs.3400/-. Then for that month which amount - i.e. Rs. 5000/-, Rs. 3400/-or Rs 3500/- we have to consider as a base salary to calculate earned salary).

2.       If the basic salary + DA will compare with 3500/- to consider as a base salary for the calculation of earned salary, can the calculated earned salary per month be more than 3500/-. ( for example : If a Person’s basic  salary + DA in a month is Rs 3450/-and he worked for 27 days ( due to also worked on his allowed w/off) in month instead of his 26 working days ( after deducting weekly offs) in that month. In this case his earned salary for that month is 3450/26*27= 3582/-. Than for that month which amount we have to consider for the calculation of bonus - i.e. Rs 3582/- or Rs 3500/-).

3.       In bonus calculation which days we consider as total working days either total days of the month (for example for April - 30 days, for May – 31 days) or total days of the month after deduct allowed weekly off (for example for April - 30 days less 4 weekly off being 4 Sundays, for May – 31 days less 5 weekly off, being 5 Sundays) or days for which he worked including Leaves with wages.

4.       In respect of above 3rd point total working days for staff members and workers will be same or not.

5.       If a company gets Allocable Surplus more than minimum bonus than is company bound to pay more than minimum bonus to employees.

6.       As it has been comes to my notice that there is requirement to maintain A, B, C registers for bonus calculation. Is there any register named ‘D’, if yes what is the format & filing procedure for same.



 5 Replies

Anil Jangid (HR Manager)     12 October 2009


Arihant AC (Legal Advisor)     12 October 2009

If the employee has not been present fully in any month than how to calculate?

i.e. If 1 employee has worked for 4 months in which his Gross Salary is come after deduction of Attendance for he has not attend ( leave without pay) then how to calculate the Bonus ?

Whether Employee has wages Rs. 5000/- & his attendance like

Apr - 24, May-26, Jun-24, July-12, Aug-10 then how to calculate the Bonus?

Please reply urgent


Anil Jangid (HR Manager)     12 October 2009

 April,may,june deduct each month Rs.292

and rest july and aug mONTH  8.33% of basic because net basic salary below RS.3500

Tushar Chowdhary (Lawyer/Consultant)     13 October 2009

Dear NAC,

While calculating bonus you need not had to consider wages at per month basis. The only thing you had to consider is either the employee has completed his total 30 days of working or not & the amount he has earned. If the amount exceeds Rs. 42000/- then he is entitled to the sum of Rs. 3500/- only (@8.33%) or in case below it than at any such applicable rate.

Thanks & Regards

Tushar Chowdhary


gopal (hr manager)     11 December 2009

Calculation of bonus:

Total Wages earned by the employee (From basic salary) x 8.33% = Bonus.

Law states minimum bonus percentage is 8.33%.

Any employee who completes 30 days in an organisation they are entitled for the bonus.


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