Hi Oindrila,
This policy is completely under your company's domain. It's your company policy that will decide how and when you have to disperse the bonus. It's a feasible option if you have candidates working only for this client. However, if you have multiple clients and many employees, you will need to involve your accounts department in the discussion.
It's advisable to check with your management to see if they would consider providing a bonus to only the employees working for this particular client and adding it to their monthly pay. This approach is risky as it may cause issues among your employees.
Regards,
AJ
From India, Thana
Acknowledge(0)
Amend(0)
98This policy is completely under your company's domain. It's your company policy that will decide how and when you have to disperse the bonus. It's a feasible option if you have candidates working only for this client. However, if you have multiple clients and many employees, you will need to involve your accounts department in the discussion.
It's advisable to check with your management to see if they would consider providing a bonus to only the employees working for this particular client and adding it to their monthly pay. This approach is risky as it may cause issues among your employees.
Regards,
AJ
From India, Thana
Acknowledge(0)Amend(0)
Hi, this is Srinivasan. I would like to know if ex gratia is paid to an employee every year, or if there is a requirement to work a certain period in the company to be eligible for it. According to the appointment order, the company has specified that ex gratia is provided annually.
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi Srinivas,
Please note that the company has to adhere to its appointment order, and hence the payment has to be done on a yearly basis. The payment decision is completely up to the company policies if they haven't mentioned such a thing in the appointment letter.
Regards,
AJ
From India, Thana
Acknowledge(0)Amend(0)
Please note that the company has to adhere to its appointment order, and hence the payment has to be done on a yearly basis. The payment decision is completely up to the company policies if they haven't mentioned such a thing in the appointment letter.
Regards,
AJ
From India, Thana
Acknowledge(0)Amend(0)
Bonus is basically for the Class IV employees who draw a basic salary of less than Rs. 3500 per month. This bonus is mandatory by law, i.e., statutory bonus. Other bonuses these days companies call it as Performance Bonus or Variable Pay, which is a much better way to express. Companies normally give a percentage of the same and do not add cost to the CTC. This pay is actually over and above the normal earning you get as it is directly linked to the achievement of certain desired objectives and KRAs. I hope this will clear the air for bonuses now.
From United Kingdom
Acknowledge(0)Amend(0)
From United Kingdom
Acknowledge(0)Amend(0)
Dear Team,
Kindly help me with the following query.
I have a part of my CTC allocated to Flexible Benefits (Flexible Benefit Plan). I used to allocate funds for petrol and driver salary from my flexible benefits, which were non-taxable. Recently, I discovered that starting next month, the maximum amount I can declare is Rs. 1200 for petrol and Rs. 600 for driver salary.
Could you please provide clarification on this matter?
Thank you in advance for your support.
Regards,
Sachin
From India, Delhi
Acknowledge(0)Amend(0)
Kindly help me with the following query.
I have a part of my CTC allocated to Flexible Benefits (Flexible Benefit Plan). I used to allocate funds for petrol and driver salary from my flexible benefits, which were non-taxable. Recently, I discovered that starting next month, the maximum amount I can declare is Rs. 1200 for petrol and Rs. 600 for driver salary.
Could you please provide clarification on this matter?
Thank you in advance for your support.
Regards,
Sachin
From India, Delhi
Acknowledge(0)Amend(0)
Would like to know elligibility of Bonus & Exgratia amount to an employee drawing basic of Rs. 25000.00 pm
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
HI All, Is there any kind of provision that we can pay bonus on the completiton of 11 month in new establishment ? Ranjan 09871103166
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
As per the Payment of Bonus Act, an employee drawing a basic salary of Rs 25,000 per month is not eligible to receive a bonus. However, if the establishment is willing to pay a bonus regardless of the salary, then it can do so.
For new establishments, even though the Act provides protection from paying bonuses for the first three years, if the establishment chooses to pay a bonus, it has the option to do so.
Regards, Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
For new establishments, even though the Act provides protection from paying bonuses for the first three years, if the establishment chooses to pay a bonus, it has the option to do so.
Regards, Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Hi,
I had a query that I wanted to discuss. Our company (Omnilink Systems) is a start-up company in Bangalore. We started operations in December 2009 and got ourselves registered in February 2010. In the US, Omnilink has been established for the past 5 years. Currently, we have 6 permanent employees and 2 consultants (on the payroll of another consulting firm). Recruitment is ongoing, and the team size is expected to increase to 15+ in 2 months. Our top management (in the US) has considered providing a Deferred Bonus to all our permanent employees - i.e., 15% or 20% of CTC as a bonus to be distributed over a period of 4-5 years. We do not plan to include the bonus amount in the CTC.
Can we proceed and mention in the appointment letter for these existing permanent employees and new employees (as and when they join) that "YOU SHALL BE ENTITLED TO A BONUS THAT WOULD BE DISTRIBUTED EQUALLY OVER A PERIOD OF FOUR YEARS"?
Is it mandatory to get registered for payment of the Bonus Act?
Kindly advise me...
Thanks,
Lakshmi
Email: cvlakshmi@omnilink.com or lakshmibright@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
I had a query that I wanted to discuss. Our company (Omnilink Systems) is a start-up company in Bangalore. We started operations in December 2009 and got ourselves registered in February 2010. In the US, Omnilink has been established for the past 5 years. Currently, we have 6 permanent employees and 2 consultants (on the payroll of another consulting firm). Recruitment is ongoing, and the team size is expected to increase to 15+ in 2 months. Our top management (in the US) has considered providing a Deferred Bonus to all our permanent employees - i.e., 15% or 20% of CTC as a bonus to be distributed over a period of 4-5 years. We do not plan to include the bonus amount in the CTC.
Can we proceed and mention in the appointment letter for these existing permanent employees and new employees (as and when they join) that "YOU SHALL BE ENTITLED TO A BONUS THAT WOULD BE DISTRIBUTED EQUALLY OVER A PERIOD OF FOUR YEARS"?
Is it mandatory to get registered for payment of the Bonus Act?
Kindly advise me...
Thanks,
Lakshmi
Email: cvlakshmi@omnilink.com or lakshmibright@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
When you fix a bonus as per the Bonus Act, you are expected to pay it within a certain period of time, i.e., within eight months of the close of the financial year. Therefore, the payment of a certain amount, say 15% of the CTC or Salary or whatever amount, over a period of five years will not satisfy the statutory obligations of an employer towards the payment of bonus. Why should you indulge yourself in troubles when you can avail the infancy protection available in the Payment of Bonus Act?
There is no registration required, but you have to send some returns to the Labour Authorities.
Regards, Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
There is no registration required, but you have to send some returns to the Labour Authorities.
Regards, Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Appointment letter-format.d oc