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☑️Payment of BONUS ACT & amendments | DIWALI bonus calculation in Excel Sheet - YouTube
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Friends, as you wait for your salary,
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similarly, you wait for your yearly bonus as well
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how much Diwali bonus do you get this year and when
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So today we decided why not solve your queries regarding bonus
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And tell you how much bonus you will receive this Diwali
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So friends, in this video, we will answer 5 such questions
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which will solve all of your queries related to the bonus
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First question is: What is Bonus Act?
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Second Question is: Is your company covered in Bonus Act?
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Third question: If your company is covered Bonus Act,
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doesn't mean that you are covered in Bonus Act as well
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We will explain that too
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Fourth question: When will you receive the bonus?
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Fifth question: Finally how much bonus will you receive?
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How much minimum bonus has been set by the government?
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and how high can it go?
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Through an excel sheet, we will explain you guys in this video
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Friends, my name is Mandeep. You are watching Labour Law Advisor
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Subscribe to this channel if you haven't already
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Do not forget to hit the bell icon
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Because you don't want to miss such important updates
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Let us move on to our first question
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What is Bonus Act?
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[Music]
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Bonus Act's full name is Payment of Bonus Act, 1965
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That means, this was started in 1965
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by giving a yearly minimum bonus to employees
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Second question: For which companies Bonus Act is applicable?
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[Music]
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All companies must meet certain conditions
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to be eligible for the Bonus Act.
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First condition: The company should be at least five years old
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Next condition: Company should be profitable
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Third condition: In the company,
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there must be minimum of 20 employees
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In addition, our third question
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which employees are eligible for Bonus Act
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whose companies are eligible for Bonus Act
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Salary of these employees should not be more than ₹ 21,000
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& those employees should be present for minimum 30 days in 1 year
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in the company
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Fourth question: Eventually when will you receive the bonus?
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[Music]
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So friends, bonus of a financial year
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following the end of the financial year,
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must be received within 8 months
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For example,
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April to March is the financial year
in your company
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For you, bonus from April to March
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must be received before October
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For this reason, most of companies prefers
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to give you bonus during Diwali
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As Diwali falls near the month of October
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Fifth question: Ultimately how much bonus you will receive?
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[Music]
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Bonus you receive is minimum 8.33% of Basic + DA wages
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Suppose if your Basic + DA wages comes up to ₹ 5,000
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Then 8.33% of it will be received as bonus for you
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Small twist here is that
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you won't receive 8.33% of Basic + DA always
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Maximum ceiling set here is ₹ 7,000
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according to amendment of 2015
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Before that, the rate was ₹ 3,500 & it may raise in future
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That means maximum 8.33% you get is only up to ₹ 7,000
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If your Basic + DA total becomes more than ₹ 7,000
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Lets say, it becomes ₹ 10,000
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You won't get 8.33% of ₹ 10,000. But you get only ₹ 7,000
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Let's understand this deeply through excel sheet
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Let's get into the tutorial
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[Intro Music]
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So friends, this is our excel calculation sheet
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Through which, for any one of employees
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I'll show you how to calculate bonus
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For your convenience, I will link this excel sheet in description
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which you can download and calculate your bonus
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If you are an employer,
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you can calculate your employees' bonus using this sheet
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Here, I will explain all the rules and regulation
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also I will explain what are these numbers
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Firstly, up here you can see employee name.
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Mentioned your employee name here
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Next, minimum wages,
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what is minimum wages and why did I mention this?
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Every state has its own minimum wages limit
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If you have full time employees,
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you must pay this amount at a minimum
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For example, ₹ 5,720
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Presently, in 2018, this is the minimum wages in Rajasthan
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₹ 5,720 for unskilled worker
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Similarly, different states have different minimum wages
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For example, In Delhi it is nearly ₹ 13,000
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Similarly for Maharashtra and other states
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minimum wages are different
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Next, I will discuss the importance of why I have mentioned it.
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Next, Government Limit on Bonus is mentioned, which is ₹ 7,000
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As I discussed before in this video
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That this limit, according to the amendment of 2015 is ₹ 7,000
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that is, Maximum limit of bonus is ₹ 7,000
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is prescribed by the government
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If someone's Basic + DA is more,
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then he gets bonus on ₹ 7,000 only
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Bonus Rate is 8.33%, which is a minimum rate
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You must get this minimum bonus
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You must get 8.33% of yearly Basic + DA
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But this is not maximum limit
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The companies can give 10%,12%,15% up to 20% bonus
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Here, I have mentioned each months
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I have copied here the government's limit
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It comes from here, that means,
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Suppose next year this limit becomes ₹ 7,500,
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I will change it over here and it changes below as well
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because I have used formula,
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where I have used 'equal to' to this cell
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Next, I have mentioned the minimum wages
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For example, ₹ 5,720, which is copied from the cell over here
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If I do changes there, changes will happen here as well
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I have applied a formula here, listen attentively
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Whichever is higher: It is possible in some cases,
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For example, In Delhi minimum wage is more than ₹ 7,000
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Suppose minimum wage ₹ 13,000 there
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In this case, the bonus limit will be ₹ 13,000 instead of ₹ 7,000
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that means, if your Basic + DA is more than ₹ 13,000
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Then you must get full 8.33% of it as bonus
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that means, whichever is higher,
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If ₹ 7,000 is higher, then ₹ 7,000
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or ₹ 13,000 or whatever is the minimum wage is higher
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accordingly, you need to set minimum limit of minimum wages
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Here, you don't need to think deeply.
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Just mention the minimum wages of your state over here
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It will choose whichever is higher between these two by itself
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Next, here mention your gross Basic + DA
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That means, if you were present all days,
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the Basic + DA you receive
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Here, I have mentioned ₹ 6,000 for first 6 months
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₹ 8,000 next if the employee gets increment of 25% or 30%
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so the salary has increased in next 6 month
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Next, here present days in a month is mentioned
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Count of days the employee was present
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is required for salary calculation
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Here you can directly mention net Basic + DA if you have
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I have calculated it and mentioned here
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Out of 30 days, how many days the employee was present,
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I have mentioned here, present for 10 days out of 30 days
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8 days out of 31 days
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Here you can see, he wasn't present for even a day in 30 days
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So no bonus received for this month
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So net Basic + DA is mentioned & calculated here
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Now, Salary for Bonus calculation
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Suppose in any month, salary is ₹ 8,000
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But for calculation, according to prescribed limit by government
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₹ 7,000 should be used for the calculation of bonus
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So here, ₹ 7,000 comes use for bonus calculation
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Suppose in any month, salary is ₹ 3,097
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But government limit is ₹ 7,000,
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then entire ₹ 3,097 is used for calculation of bonus
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Calculation of bonus is very easy
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Whatever the bonus wages you are getting,
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be it ₹ 6,000, ₹ 7,000 or ₹ 2,000
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Calculate it's 8.33%. Here calculation is automatic
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I have given formula for calculation here
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If in any company, bonus rate is 10%,
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I will change here and explain
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And monthly bonuses in a year are added and total is shown here
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I will play around with the numbers and explain you
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If I changed to 10% over here,
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See the bonus here changes from ₹ 4,635 to ₹ 5,565
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If I increase the prescribed limit from the government,
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and I change it from ₹ 7,000 to ₹ 7,500 or ₹ 7,200,
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again the bonus limit changes here
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So whatever the changes you do over here,
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your prescribed bonus limit changes accordingly
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I will be adding this excel as well
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Friends, if you liked this video
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definitely share this video with your friends
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It will helpful for them
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In addition, don't forget to subscribe to our channel
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Like this video as well
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Firends, this is Labour Law Advisor.
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Signing off Mandeep and Rishabh.
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[Outro Music]
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