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Bonus calculation Diwali

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Amit

Accounts

528 Points Posted on 03 November 2021

How to to calculate bonus...
basic+DA*8.33%

number of days is relevant while calculate bonus ???

Replies (4)

Quick Summary

This discussion clarifies how to calculate the Diwali bonus for employees. It explains that eligibility is for those with gross earnings below Rs. 21,000. The calculation depends on the Basic+DA amount: if it's below Rs. 7000, the bonus is calculated on the actual amount; if it's above Rs. 7000, the bonus is capped at Rs. 7000. The relevance of the number of working days in a month for bonus calculation is also addressed.

CA Aakarsh Jain

10436 Points Posted on 03 November 2021

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.