If the organization pays leave and bonus in monthly basis, how can the leave and bonus register be maintained?
From India, Mumbai
From India, Mumbai
You cannot pay (pay salary in lieu of leave) every month. Leave is a employee welfare measure and the same is meant to be availed and not surrendered or encashed. It is with this objective that the law has mandated encashment of leaves only when the employment is terminated and not during the service.
Bonus is an annual payment. It cannot be paid in monthly installments. Moreover, the law of Bonus provides that any bonus payable for the preceding financial year should be paid within 8 months of the current year. If you stretch it to 12 months, it would become illegal.
From India, Kannur
4248Bonus is an annual payment. It cannot be paid in monthly installments. Moreover, the law of Bonus provides that any bonus payable for the preceding financial year should be paid within 8 months of the current year. If you stretch it to 12 months, it would become illegal.
From India, Kannur
@Madhu T K
sir.. few companies bifurcate bonus one in monthly payment and otther as per Bonus act annual- as you say..
i seen / read few company doing that .. lets say total 12 k bonus... 6k/12= 500 monhtly bonus paid and 6k paid time of diwali...
is it right ...
1. can it come under statutary bonus or
2. bonus -incentive part
thanks
From India, Mumbai
sir.. few companies bifurcate bonus one in monthly payment and otther as per Bonus act annual- as you say..
i seen / read few company doing that .. lets say total 12 k bonus... 6k/12= 500 monhtly bonus paid and 6k paid time of diwali...
is it right ...
1. can it come under statutary bonus or
2. bonus -incentive part
thanks
From India, Mumbai
If the bonus element or a part of bonus is paid monthly, the same will not be treated as part payment of bonus or pooja bonus or customary bonus, as permitted under section 17 of the Act. If permitted the very objective of the act will be defeated.
You are right, there are companies who pay it in parts, but there are companies who deviate from the law.
Incentive is different from bonus. Incentive is an additional remuneration based on targets, and it is purely an amount payable on fulfillment of certain conditions. It is outside the scope of Payment of Bonus Act or any statute governing payment of wages.
From India, Kannur
You are right, there are companies who pay it in parts, but there are companies who deviate from the law.
Incentive is different from bonus. Incentive is an additional remuneration based on targets, and it is purely an amount payable on fulfillment of certain conditions. It is outside the scope of Payment of Bonus Act or any statute governing payment of wages.
From India, Kannur
It is a fact that other than few organized sectors, MNCs etc , most of the Indian organizations are not following Bonus Act in totality. Most of the organizations are paying 8.33% as minimum bonus irrespective of profit or loss. Some organizations are paying ex-gratia other than bonus.
If we are interested to follow the Bonus Act in totality, it will be required to determine % of bonus based on the basis of Gross profit of the P & L Account of any particular financial year , available surplus, allocable surplus, Set On & Set Off.
After determining the % of bonus, the statutory bonus to be paid within 8 months of completion of financial year in one go, not on any other method. If we follow any other method it will be illegal or customary bonus.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
If we are interested to follow the Bonus Act in totality, it will be required to determine % of bonus based on the basis of Gross profit of the P & L Account of any particular financial year , available surplus, allocable surplus, Set On & Set Off.
After determining the % of bonus, the statutory bonus to be paid within 8 months of completion of financial year in one go, not on any other method. If we follow any other method it will be illegal or customary bonus.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
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