User needs to create a Bonus Definition or Bonus Master first. Open Payroll module, go to Benefits Menu -> Bonus and click on Add New button. This will open you a new form. Fill up the information explained below:
Bonus Definition
1. Bonus Name : Enter any Name for Bonus i.e. Bonus 2023.
2. Bonus Type : Select Bonus Type (Bonus or ExGratia or Bonus + ExGratia).
3. From Month : Select month from which you want to calculate bonus amount.
4. To Month : Select 'To month' here
5. Pay Month : Bonus will be paid in selected month here.
Bonus Calculation
6. Salary Type : You can either select individual Salary Heads here or select Gross Salary for Bonus calculation.
7. Salary Calculate On : Bonus can be calculated Salary Rate or on Earned Salary. Select according your requirement.
8. Upper Salary limit : You can define upper salary limit for Bonus calculation here. For example if Bonus is 20% of Gross Salary, but you don't want to pay more than 2000 as Bonus in a month, Then you need to define upper limit as 10,000 here. Employee who has more than 10,000 Gross Salary, will get 2000 bonus only because of upper limit configuration. Enter 0 for no limit.
9. Salary Cut Off Limit for Bonus : Specify maximum salary range for bonus calculation. Employees who have salary more than cut off limit specified, will not be eligible for Bonus.
10. Bonus Rate : The rate at which bonus is to be calculated like 10%, 20%, 50% etc.
11. Payment Mode : Select payment mode like Cash, Bank transfer, NEFT here.
12. Round Off : Bonus amount needs to be rounded off or not, select here.
Other Setting
13. Consider Employees with a minimum working day - The number of days an employee has to present to receive the bonus. If employee has less present days in "From and To" months, no bonus will be calculated.
14. Upper Limit of Bonus Amount : You can specify maximum bonus amount here.
15. Apply PT Calculation on Bonus : Enable if you wish to deduct professional tax on Bonus amount.
After filling up all the details in Bonus Definition, save the same and assign employees as shown below:
1. Click assign employee for Bonus Definition:
2. From next page, filter employee list and click on Assign Employees button.
3. Once employees are assigned it will start showing in the list below with their Bonus Salary and Bonus amount. Now you need to click on 'Approve Bonus' button to approve the bonus amount.
4. Now back to the Bonus Definition page (Benefit Menu -> Bonus) and click on 'Print Bonus Report' or 'Excel Bonus Report' icons to generate the reports.
Bonus Payout:
After approving bonus, we need to pay bonus amount separately. Click on Benefit Menu -> Bonus Payouts and select payout mode first i.e. cash, NEFT etc. Now select the employees and click on issue button.
