How to calculate Diwali bonus?

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Hi seniors, I am looking for the calculation of the Diwali Bonus (Formula), Can you please help me in this regard.

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Vikas Bhardwaj
Vikas Bhardwaj One month ago

The calculation for Diwali Bonus

If the gross earning of your employees is below Rs. 21,000 employers are liable to pay bonuses. Calculation of bonus will be as follows:

  • If Salary is equal to or less than Rs. 7000/- then the bonus is calculated on the actual amount by using the formula: Bonus = Salary x 8.33/100
  • If Salary is more than Rs. 7,000/- then the bonus is calculated on Rs. 7,000/- by using the formula: Bonus = 7,000 x 8.33/100 

Note: Salary means Basic Salary + Dearness Allowance

Example 1: If Bella’s Salary is Rs. 6000/- than the bonus payable to Bella shall be = 6000 x 8.33/100 = 500 per month (Rs. 6000/- per year). 

Example 2: If Brandon’s Salary is Rs. 7000/- than bonus payable to Brandon =583 per month (Rs. 6996/-  per year). 

Example 3: If Bipasha’s Salary is Rs. 15000 than bonus payable to Bipasha shall be = 7000 x 8.33/100 = 583 per month (Rs. 6996/- per year).  

Hope this will help you in calculating any type of Bonus, the formula is the same.

Source Reference: Legawise

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