# How I calculate bonus?

##### Share & Follow this Post ###### Vikas Bhardwaj One month ago

We need to check first If the gross earning of an employee is below Rs. 21,000, then the employer is liable to pay a bonus. Here is the formula and calculation of bonus as mentioned below :

• If Salary is equal to or less than Rs. 7000/-PM 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/-PM 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 Ripu’s Salary is Rs. 6000/- then the bonus payable to Ripu shall be = 6000 x 8.33/100 = 500 per month (Rs. 6000/- per year).

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

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