Dear Seniors,
Please help me out. If an employee has a basic salary above 10,000/-, can we give them a bonus? And if we provide them with ex-gratia, is ex-gratia mandatory, or can we avoid it?
Thanks,
Amit Sharma
From India, Delhi
1Please help me out. If an employee has a basic salary above 10,000/-, can we give them a bonus? And if we provide them with ex-gratia, is ex-gratia mandatory, or can we avoid it?
Thanks,
Amit Sharma
From India, Delhi
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Dear Amit,
If any employee's basic salary is above 10,000, then no employer is liable to pay a bonus. Even employees can't file any legal dispute case against the company either. Generally, to motivate employees and create a better industrial environment, companies pay them in the ex-gratia term. However, statutorily, no employer is bound to give a bonus above a basic 10,000.
For any further queries, you can discuss.
Ratikanta Rath
From India, Durgapur
If any employee's basic salary is above 10,000, then no employer is liable to pay a bonus. Even employees can't file any legal dispute case against the company either. Generally, to motivate employees and create a better industrial environment, companies pay them in the ex-gratia term. However, statutorily, no employer is bound to give a bonus above a basic 10,000.
For any further queries, you can discuss.
Ratikanta Rath
From India, Durgapur
Yes, you can give a bonus, though the Basic is greater than 10000 and Ex-gratia is not mandatory. It is purely at the discretion of the management to pay ex-gratia. Normally, when an amount is paid to employees who are not covered under the Payment of Bonus Act and when some amount is given in excess of the ceiling prescribed under the Act (bonus earnings restricted to Rs. 3500 per month), it will be termed as Ex-gratia in the bilateral/tripartite settlements.
Normally, ex-gratia is the amount paid to employees in recognition of their cooperation and contribution. The employees have no right to demand ex-gratia unless it is contemplated in a settlement between the employer and employee.
From India, Mumbai
Normally, ex-gratia is the amount paid to employees in recognition of their cooperation and contribution. The employees have no right to demand ex-gratia unless it is contemplated in a settlement between the employer and employee.
From India, Mumbai
Even when paying the ex-gratia, you should be very careful. Bonus is a statutory obligation; hence, whether your company is running with profits or losses, you should pay a minimum bonus but not in the case of ex-gratia. Unfortunately, there is a critical word in English - "practice" - that plays a vital role. Therefore, when you are paying the ex-gratia, you should take an undertaking from each employee that they should not quote this as a precedent and demand the same next year.
If the company is profitable, they will pay the ex-gratia, but unlike the bonus, there is no obligation for ex-gratia.
Regards,
Kamesh
From India, Hyderabad
If the company is profitable, they will pay the ex-gratia, but unlike the bonus, there is no obligation for ex-gratia.
Regards,
Kamesh
From India, Hyderabad
Hi,
Can anyone advise me?
1. I'm an HR professional working with a company in Kerala. My monthly gross is Rs. 15,000. My company employs only 6 employees. I want to know if there will be deductions like ESI and PF in my salary.
2. When I move from this job, will the new employer ask me for previous ESI or PF forms? What will I do then, and which document can I produce to state that I was not eligible for ESI or PF?
From India, Kochi
Can anyone advise me?
1. I'm an HR professional working with a company in Kerala. My monthly gross is Rs. 15,000. My company employs only 6 employees. I want to know if there will be deductions like ESI and PF in my salary.
2. When I move from this job, will the new employer ask me for previous ESI or PF forms? What will I do then, and which document can I produce to state that I was not eligible for ESI or PF?
From India, Kochi
Dear Renu,
For your first query, since you are stating that only 6 employees are working in your company, the company will not deduct EPF and ESI from your salary. As you are aware, for obtaining the EPF Code, a minimum of 20 employees is required, and for the ESI Code, a minimum of 10 employees is required.
Regarding your second query, no employer will ask for any details of your previous employer's EPF.
Ratikanta Rath
From India, Durgapur
For your first query, since you are stating that only 6 employees are working in your company, the company will not deduct EPF and ESI from your salary. As you are aware, for obtaining the EPF Code, a minimum of 20 employees is required, and for the ESI Code, a minimum of 10 employees is required.
Regarding your second query, no employer will ask for any details of your previous employer's EPF.
Ratikanta Rath
From India, Durgapur
Even if they ask, also, you tell the fact. Nowadays, every employer is inquiring about the previous company and also inquiring with the previous employer.
ESI & PF are statutory obligations, and any employer will invite problems unless they are covered. One piece of advice is either you have to keep your monthly payslip or request the management to deposit your salary directly into the bank so that you have proof.
Regards - Kamesh
From India, Hyderabad
ESI & PF are statutory obligations, and any employer will invite problems unless they are covered. One piece of advice is either you have to keep your monthly payslip or request the management to deposit your salary directly into the bank so that you have proof.
Regards - Kamesh
From India, Hyderabad
Dear Seniors
Myself Subhajit, Asst. Manager HR in our companies.
Please help me out.
Recently we pay the bonus one employee who’s his Basic Salary is 10, 000 /- p/m. And we are give him the bonus Rs.10, 000 /- , and no pay ex gratia. Is it right or wrong?
Thanks,
Subhajit Bhowmick
From India, Calcutta
Myself Subhajit, Asst. Manager HR in our companies.
Please help me out.
Recently we pay the bonus one employee who’s his Basic Salary is 10, 000 /- p/m. And we are give him the bonus Rs.10, 000 /- , and no pay ex gratia. Is it right or wrong?
Thanks,
Subhajit Bhowmick
From India, Calcutta
Dear Subhajit, If for 1 month then As Per Bonus act in C register u have to show Rs./-3500 for statutory Purpose and rest amount 6500 show in ex-Gratia head. Ratikanta Rath
From India, Durgapur
From India, Durgapur
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