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As per the Bonus Act of 1965, the bonus has to be paid at a rate ranging from 8.33% to 20%. The minimum bonus to be paid can be specified in the appointment letter. The ceiling was recently raised from Rs. 3500 to Rs. 10,000. Certain organizations pay ex-gratia to executives earning more than Rs. 10,000 per month. I believe there is nothing wrong with mentioning the minimum assured amount in the offer of employment. Some of the leading/best employers in the country even include performance pay in the CTC, which is solely based on performance. However, they determine the performance pay based on average/normal performance.
Rajesh Babu
From India, Kochi
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Rajesh Babu
From India, Kochi
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As per the Bonus Act of 1965, the bonus has to be paid at a rate ranging from 8.33% to 20%. The minimum bonus to be paid can be indicated in the appointment letter. The ceiling was recently increased from Rs. 3,500 to Rs. 10,000. Some organizations provide ex-gratia for executives earning more than Rs. 10,000 per month.
I believe there is no issue with specifying the minimum assured amount in the offer of employment. Some of the top employers in the country even include performance pay in the CTC, which is based solely on performance. However, they determine the performance pay based on average or normal performance.
Rajesh Babu
From India, Kochi
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I believe there is no issue with specifying the minimum assured amount in the offer of employment. Some of the top employers in the country even include performance pay in the CTC, which is based solely on performance. However, they determine the performance pay based on average or normal performance.
Rajesh Babu
From India, Kochi
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Could you please advise if Bonus is payable on leaves encashed.
From India, Mumbai
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From India, Mumbai
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No bonus is payable on the amount of leave encashed.
Very important: The post pertains to 2010, some six years back, when the ceiling for bonus was Rs 10,000 and bonus was calculated on Rs 3,500. Now these are Rs 21,000 and Rs 7,000 respectively.
Madhu.T.K
From India, Kannur
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Very important: The post pertains to 2010, some six years back, when the ceiling for bonus was Rs 10,000 and bonus was calculated on Rs 3,500. Now these are Rs 21,000 and Rs 7,000 respectively.
Madhu.T.K
From India, Kannur
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Sir,
We are facing a problem regarding the bonus because we received a work order from a government body to provide manpower services through outsourcing. While participating in the bidding process, the employer fixed the service charge at 5% of wages, which includes bonus payments. It was stated in the tender that the bonus payment would not be considered as part of the service provider's remuneration. In this situation, what steps should we take? If we continue working with the company, we will incur a loss of -3.33%.
Please advise on how to proceed in this scenario.
Thank you.
From India, Indore
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We are facing a problem regarding the bonus because we received a work order from a government body to provide manpower services through outsourcing. While participating in the bidding process, the employer fixed the service charge at 5% of wages, which includes bonus payments. It was stated in the tender that the bonus payment would not be considered as part of the service provider's remuneration. In this situation, what steps should we take? If we continue working with the company, we will incur a loss of -3.33%.
Please advise on how to proceed in this scenario.
Thank you.
From India, Indore
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