Selvaraj R (HR Professional) 18 August 2009

Impact of Bonus on LOP

Dear members

I have a clarification pertaining to Bonus Calculation.

Bonus Calculation is done with Rs.3500/-

Bonus Ceiling - Rs.10,000/-

My doubt is

Our company is paying Bonus before deepawali for all employees irrespective of Bonus ceiling.

Bonus - 20% and Ex-gratia - 30%, Calculation with - 3500/-

Let us take an employee Basic+DA - 10,000 per month. If he goes on loss of pay of 10 days during a month. His earned basic+DA for that month will be Rs.6660/-.

As per act 20% bonus - Rs.8400/-. Does the 10 days loss of pay will reduce his bonus amount or not??????

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1 Replies

Tushar Chowdhary (Lawyer/Consultant) 07 October 2009

Dear Selvaraj R,

As per the bonus Act, 1965 we do not consider monthly wages,, we calculate it on annual basis...

As you very well know that bonus calculation is done on Rs 3500/- so annually it amounts maximum upto Rs. 42000/-. Now it is whatevr the percentage to be paid it must be calculated on this amount or any amount less than this which an employe recieves.

Hope it will help you in understanding the problem..

Regards

Tushar Chowdhary