1. What is Bonus Calculation As Per Act?

The Bonus Calculation As Per Act refers to the calculation of bonus payments according to the Payment of Bonus Act, 1965 in India. This act mandates that eligible employees receive a minimum bonus of 8.33% of their salary or wages.

2. How Does the Calculator Work?

The calculator uses the bonus formula:

Where:

• \( Salary \) — Employee's basic salary plus dearness allowance
• \( 8.33\% \) — Minimum bonus percentage as per the Act

Explanation: The Payment of Bonus Act, 1965 ensures that employees receive a minimum bonus of 8.33% of their salary, regardless of the employer's profits.

3. Importance of Bonus Calculation

Details: Accurate bonus calculation is crucial for employers to comply with Indian labor laws and for employees to receive their rightful earnings as mandated by the Payment of Bonus Act, 1965.

4. Using the Calculator

Tips: Enter the employee's salary amount in dollars. The calculator will compute the minimum bonus amount as per the Payment of Bonus Act requirements.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for bonus under the Payment of Bonus Act?
A: Employees drawing salary up to ₹21,000 per month and who have worked for at least 30 days in an accounting year are eligible.

Q2: Is 8.33% the maximum bonus?
A: No, 8.33% is the minimum bonus. The maximum bonus can go up to 20% depending on the available surplus.

Q3: What is included in "salary" for bonus calculation?
A: Basic salary plus dearness allowance. Other allowances are not included.

Q4: Are there any exemptions under the Act?
A: Yes, certain establishments like LIC, hospitals, educational institutions, and some government organizations may be exempt.

Q5: When should the bonus be paid?
A: The bonus should be paid within 8 months from the close of the accounting year, typically before Diwali.