Hope everyone is safe and healthy.
I have a small confusion regarding statutory bonus calculation. Below is the e.g for reference:
Calculation of Bonus as per Bonus Act (Amendment of 2015)
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:
If Basic+DA is below Rs.7000 then the bonus will be calculated on the actual amount.
If Basic+DA is above Rs.7000 then the bonus will be calculated on Rs.7000.
If the Basic salary of the employee is less than or equal to Rs 7,000
Saahil is working as an engineer in a Company in Bangalore. His basic salary is Rs. 6,500 per month.
Formula: Basic Salary*8.33% = Bonus per month
6500*8.33% = 541.45 (6497.4 per annum)
If the Basic salary of the employee is higher than Rs 7,000
Vedant is working as a Sales officer in one of the shops in Delhi. His basic salary is Rs. 18,000 per month.
Formula: Basic Salary*20% = Bonus per month
7,000*20% = 1400 per month
If the Basic salary of the employee is higher than Rs 21,000
There is no bonus applicable to employees having a basic salary of more than Rs. 21000.
I got clarity on Case 1 and Case 3, but I have confusion with Case 2. Can we keep the percentage at 8.33%, or do we have to keep 20% for this, or it can vary between 8.33%-20%.
Kindly help me out.