Please help me and guide me on the following issues:
1) Are resigned employees eligible for Diwali Bonus?
2) What would be the percentage of Diwali bonus for resigned employees?
3) Are they eligible for Ex-gratia as well?
4) If they resign and start the same business, becoming a competitor, are they still eligible for Diwali bonus?
5) Are terminated employees also eligible for Diwali bonus?
I am waiting for your prompt reply, sir.
From India, Mumbai
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1) Are resigned employees eligible for Diwali Bonus?
2) What would be the percentage of Diwali bonus for resigned employees?
3) Are they eligible for Ex-gratia as well?
4) If they resign and start the same business, becoming a competitor, are they still eligible for Diwali bonus?
5) Are terminated employees also eligible for Diwali bonus?
I am waiting for your prompt reply, sir.
From India, Mumbai
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Dear colleague,
It is unclear whether you mean Diwali bonus and statutory bonus under the Payment of Bonus Act as the same. There is no Diwali bonus under the Act. It is just that organizations choose to pay statutory bonus on the eve of Diwali.
Under the Act, every employee who has worked for 30 days in the financial year is eligible to receive a bonus whether working or resigned. Employees drawing a salary up to ₹21,000 per month are eligible, but the bonus is payable only on a salary of ₹7,000 per month or minimum wages for the industry/skill level, whichever is higher. The minimum bonus percentage is 8.33%, and the maximum is 20%. Bonus is payable within eight months from the close of the financial year.
Ex-gratia payment is outside the scope of the statutory bonus, and its eligibility to receive by the ex-employees is left to the management's decision.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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660It is unclear whether you mean Diwali bonus and statutory bonus under the Payment of Bonus Act as the same. There is no Diwali bonus under the Act. It is just that organizations choose to pay statutory bonus on the eve of Diwali.
Under the Act, every employee who has worked for 30 days in the financial year is eligible to receive a bonus whether working or resigned. Employees drawing a salary up to ₹21,000 per month are eligible, but the bonus is payable only on a salary of ₹7,000 per month or minimum wages for the industry/skill level, whichever is higher. The minimum bonus percentage is 8.33%, and the maximum is 20%. Bonus is payable within eight months from the close of the financial year.
Ex-gratia payment is outside the scope of the statutory bonus, and its eligibility to receive by the ex-employees is left to the management's decision.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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Diwali Bonus Survey.doc