I had left Pvt. ltd company in Howrah, West Bengal 1 month back and in that my CTC was changed. As per HR & My reporting manager given me option for bonus. Previously it was 2 month variable bonus in my CTC and they have told us that variable will be judge only by performance hence they have changed 2 Month variable Bonus to 1 Month fixed Bonus in my CTC. They told that 1 month Fixed bonus will be given 100%. I have taken it on October and I left job competing January Month. Now at the time of FNF they denied to give part of Bonus on pro rata basis . They are telling that this is managements desecration.
My question is why should I not get part of Bonus till the time I had worked on pro rata basis. This is a fixed bonus and not a variable or incentive.
The same bonus they are giving on pro rata basis to other employee whom company is removing from Job and I have left from my own wish. Can this is true.
I want to challenge legally to them if I am write. Please share your view on the same.
Mail received from HR:-------
Subject: Revision in Compensation Structure
Dear xxx,
As part of our employee centric approach at xyz pvt ltd, and as per the discussion with you, we have
decided to change your annual bonus structure to a one-time full payment during the festive season
of Diwali every year.
A detailed CTC structure is present in the second part of this letter.
We do hope that you make the most out of this opportunity provided.
Wishing you all the best.
REVISED ANNUAL CTC STRUCTURE
Assured Gross Salary Per Month Annual Mode of Payment
Total Annual CTC 430,560
Annual Bonus 33,120
Total Fixed CTC 397,440
Basic 198,720 Payslip
House Rent Allowance 99,360 Payslip
Bonus (As per Bonus Act) 16,560 Payslip
Mobile Reimbursement 3,974 Reimbursement
Food Coupon Allowance 18,000 Reimbursement
Vehicle Maint Reimbursement 39,226 Reimbursement
Employer Contribution to PF 21,600 PF
Deductions:
Professional tax 1,800 PT
Employee Contribution to PF 21,600 PF
Total Deduction before IT 23,400
Net in Hand Salary Before Income Tax 374,040
From India, Kolkata
My question is why should I not get part of Bonus till the time I had worked on pro rata basis. This is a fixed bonus and not a variable or incentive.
The same bonus they are giving on pro rata basis to other employee whom company is removing from Job and I have left from my own wish. Can this is true.
I want to challenge legally to them if I am write. Please share your view on the same.
Mail received from HR:-------
Subject: Revision in Compensation Structure
Dear xxx,
As part of our employee centric approach at xyz pvt ltd, and as per the discussion with you, we have
decided to change your annual bonus structure to a one-time full payment during the festive season
of Diwali every year.
A detailed CTC structure is present in the second part of this letter.
We do hope that you make the most out of this opportunity provided.
Wishing you all the best.
REVISED ANNUAL CTC STRUCTURE
Assured Gross Salary Per Month Annual Mode of Payment
Total Annual CTC 430,560
Annual Bonus 33,120
Total Fixed CTC 397,440
Basic 198,720 Payslip
House Rent Allowance 99,360 Payslip
Bonus (As per Bonus Act) 16,560 Payslip
Mobile Reimbursement 3,974 Reimbursement
Food Coupon Allowance 18,000 Reimbursement
Vehicle Maint Reimbursement 39,226 Reimbursement
Employer Contribution to PF 21,600 PF
Deductions:
Professional tax 1,800 PT
Employee Contribution to PF 21,600 PF
Total Deduction before IT 23,400
Net in Hand Salary Before Income Tax 374,040
From India, Kolkata
Seen from the perspective of Payment of Bonus Act 1965, the entire thing is wrong and untenable. First of all there cannot be a Fixed bonus. The bonus payment would depend on the allocable and available surplus of each year subject to set on /set off. So it has to be derived each year and cannot be presupposed at any point of time during the year.
You got bonus in last October, that has to be of 2020-21 paid in October 2021. Now the 2021-22 is in progress so they cannot decide or distribute the bonus now. The Act provides for adhoc payment and once the employee has worked for 30 days in a financial, he/she is entitled to part payment in proportion to the days worked (Section 13). Section 19 mandates that payment of bonus has to be done within 8 months of closure of the financial year. So you need to wait for October to force the issue but you can demand payment before that.
From India, Mumbai
1534You got bonus in last October, that has to be of 2020-21 paid in October 2021. Now the 2021-22 is in progress so they cannot decide or distribute the bonus now. The Act provides for adhoc payment and once the employee has worked for 30 days in a financial, he/she is entitled to part payment in proportion to the days worked (Section 13). Section 19 mandates that payment of bonus has to be done within 8 months of closure of the financial year. So you need to wait for October to force the issue but you can demand payment before that.
From India, Mumbai
It appears from the post that after review of the remuneration there are two BONUS - Annual Bonus and Bonus as per Payment of Bonus Act. Poster is eligible for Bonus as per Payment of Bonus Act for the period Apr,21 to Jan,22.
The statutory bonus which has been shown in remuneration package is one month actual basic 16,560 which is not calculated as per Payment of Bonus Act, rather it is customary bonus. Organization may pay customary bonus but bonus under the payment of bonus act has to be calculated and if it is more than customary bonus , then the difference should be paid. In reverse no action is required. I have come across with many organization - middle sector, Small sector where the organizations are paying statutory bonus on customary basis and always more than bonus as per PB Act ( one/two months actual basic or basic+da etc. etc.) . They are also not calculating bonus as per payment of bonus act.
Now come to Annual Bonus which may be Retention, Profit Sharing etc. Usually most of the organizations are not paying it if the employee did not serve for the whole year.
S K Bandyopadhyay ( Howrah, WB)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
The statutory bonus which has been shown in remuneration package is one month actual basic 16,560 which is not calculated as per Payment of Bonus Act, rather it is customary bonus. Organization may pay customary bonus but bonus under the payment of bonus act has to be calculated and if it is more than customary bonus , then the difference should be paid. In reverse no action is required. I have come across with many organization - middle sector, Small sector where the organizations are paying statutory bonus on customary basis and always more than bonus as per PB Act ( one/two months actual basic or basic+da etc. etc.) . They are also not calculating bonus as per payment of bonus act.
Now come to Annual Bonus which may be Retention, Profit Sharing etc. Usually most of the organizations are not paying it if the employee did not serve for the whole year.
S K Bandyopadhyay ( Howrah, WB)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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