Dear All,
I am working as a Senior Executive in a manufacturing company. We are planning to restructure the salary break-up. Kindly guide me on the following matters:
1. Management wishes to include the bonus (as per the Bonus Act 1965) as part of the CTC. Is it legally correct to do so?
2. Is there a limit on the LTA entitlement for an employee based on CTC?
Thank you.
From India, New Delhi
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I am working as a Senior Executive in a manufacturing company. We are planning to restructure the salary break-up. Kindly guide me on the following matters:
1. Management wishes to include the bonus (as per the Bonus Act 1965) as part of the CTC. Is it legally correct to do so?
2. Is there a limit on the LTA entitlement for an employee based on CTC?
Thank you.
From India, New Delhi
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Dear Prerana,
Bonus is not a part of CTC. Bonus means a reward given once a year at any festival or at the end of the year. There is a minimal amount specified to be given as a bonus, but if the company is performing well, you can give more bonus. Bonus can be cash, attendance bonus, ESOPS, etc.
As bonus is varying, it can't be part of CTC, and a reward is never the payment also.
From India, Mumbai
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Bonus is not a part of CTC. Bonus means a reward given once a year at any festival or at the end of the year. There is a minimal amount specified to be given as a bonus, but if the company is performing well, you can give more bonus. Bonus can be cash, attendance bonus, ESOPS, etc.
As bonus is varying, it can't be part of CTC, and a reward is never the payment also.
From India, Mumbai
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The LTA amount is one months basic salary for the employee. You cannot increase more then that.
From India, New Delhi
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1From India, New Delhi
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Hi, Some companies include Bonus, LTA, Gratuity amount in the CTC. Bonus - 8.33% of basic LTA - One month basic 4.75 % on Basic as gratuity is shown in the CTC This is not illegal. Giri
From India, Bangalore
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From India, Bangalore
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Dear prerna.parry, Bonus can’t be a part of CTC.. However some companies include bonus to the CTC given..
From India, Bangalore
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From India, Bangalore
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Dear,
Any cost incurred by the employer on the employees can be covered in the CTC whether it is a statutory payment such as Bonus, Gratuity, Compulsory Insurance, etc. The employer enjoys the right to cover all such costs in CTC. An important point here is that the employer is not authorized to recover any statutory costs from the employees. Generally, the Statutory Bonus component is shown separately, and no deduction for its payment is shown.
From India, Rohtak
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Any cost incurred by the employer on the employees can be covered in the CTC whether it is a statutory payment such as Bonus, Gratuity, Compulsory Insurance, etc. The employer enjoys the right to cover all such costs in CTC. An important point here is that the employer is not authorized to recover any statutory costs from the employees. Generally, the Statutory Bonus component is shown separately, and no deduction for its payment is shown.
From India, Rohtak
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Hi Maheh,
Could you please tell me where it's written that the bonus cannot be a part of CTC? If an employer is paying a bonus at a flat rate of 8.33%, is it good for the employee? What's wrong?
I am waiting for your response. Please provide explanations along with your points; don't just write without reason.
Warm regards,
Rahul
From India, Delhi
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Could you please tell me where it's written that the bonus cannot be a part of CTC? If an employer is paying a bonus at a flat rate of 8.33%, is it good for the employee? What's wrong?
I am waiting for your response. Please provide explanations along with your points; don't just write without reason.
Warm regards,
Rahul
From India, Delhi
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