Hi Friends, I want to know what is difference between Bonus & Ex-Gratia. Regards, Rajiv
From India, Chandigarh
From India, Chandigarh
Bonus comes under the regulation of Bonus Act, which you can found from google, and ex-gratia is a concept to provide a kind of extra amount for the senior employees, who are not eligible to get bonus as per the various provisions of Bonus Act, amended by government.
From Singapore
28From Singapore
Bonus may be under the payment of Bonus Act or it may be paid as a share in the profits or bonus may be paid as an incentive for performance or productivity and often paid unde an agreement/settlment/award on fulfilling eligibility norms. Ex-gratia is an amount paid by the employer out of his own volition either in lieu of bonus to those who are not falling under the eligibility norms or as some monetarory relief,pendinga settlement on an issue etc.
B.Saikumar
HR & labour law advisor
Mumbai.
From India, Mumbai
B.Saikumar
HR & labour law advisor
Mumbai.
From India, Mumbai
Bonus under the Payment of Bonus Act will be paid as per the eligibility criteria of the employee and the amount (%) of Bonus depends on the Allocable Surplus of the Company. In some cases Companies may link it to the production of the Company also which is called Productivity linked Bonus. Ex-gratia will be paid to the employees who are not eligible for bonus under the Act.
Some times companies may pay statutury Bonus to the employees under the Act and in addition to this they may pay Ex-gratia amount also to them if there is any Settlement with the Union to that effect.
D. Phani Kumar
DGM- HR
VASAVADATTA CEMENT
Sedam, Gulbarga Dist.
KARNATAKA
Some times companies may pay statutury Bonus to the employees under the Act and in addition to this they may pay Ex-gratia amount also to them if there is any Settlement with the Union to that effect.
D. Phani Kumar
DGM- HR
VASAVADATTA CEMENT
Sedam, Gulbarga Dist.
KARNATAKA
Bonus refers to statutory payment to be made to employees as per the Payment of Bonus Act, whereas Ex-Gratia is : (i) an additional bonus paid to those who are entitled to bonus and (ii) Payment in lieu of Bonus made to those employees who are not entitled to bonus under the purview of the Payment of Bonus Act.
The amount of bonus calculated by applying the norms as per the Payment of Bonus Act will be far less than the amont generally expected by the employees and therefore, a vast majority of the comapnies declare bonus of a higher amount, after reaching agreement with the Trade Unions for payment of a specified percentage / amount. The difference between the actual amount of Bonus paid over and above the amount calculated as per the Bonus Act is termed as Ex-Gratia.
S. Dass,
DGM (Finance)
Multitrack Engineering Pvt. Ltd.
From India, Bangalore
The amount of bonus calculated by applying the norms as per the Payment of Bonus Act will be far less than the amont generally expected by the employees and therefore, a vast majority of the comapnies declare bonus of a higher amount, after reaching agreement with the Trade Unions for payment of a specified percentage / amount. The difference between the actual amount of Bonus paid over and above the amount calculated as per the Bonus Act is termed as Ex-Gratia.
S. Dass,
DGM (Finance)
Multitrack Engineering Pvt. Ltd.
From India, Bangalore
Dear friend,
Bonus is an annual payment that has to be paid compulsarily to all eligible employees as per Bonus Act.
Ex-gratia is a payment that can be paid by an employer to any employee, even if he/she is eligible for bonus or not, at the employer's sole discretion. This way, an employee who is eligible for bonus can get both bonus and exgratia or bonus only, and an employee who is not elible for bonus may or may not get ex-gratia.
If the bonus is not paid, you can always claim it, but ex-gratia is not claimable.
Regards,
T. Chandran
From India, Kolkata
Bonus is an annual payment that has to be paid compulsarily to all eligible employees as per Bonus Act.
Ex-gratia is a payment that can be paid by an employer to any employee, even if he/she is eligible for bonus or not, at the employer's sole discretion. This way, an employee who is eligible for bonus can get both bonus and exgratia or bonus only, and an employee who is not elible for bonus may or may not get ex-gratia.
If the bonus is not paid, you can always claim it, but ex-gratia is not claimable.
Regards,
T. Chandran
From India, Kolkata
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companies like ongc and aai follow this method .
From India, New Delhi
companies like ongc and aai follow this method .
From India, New Delhi
Dear Chandran
I am afraid it is not true that bonus can only be claimed under law and not ex-gratia.If ex-gartia is paid pursuant to a settlemnt or agreement, it too can be claimed in appropriate forum. Even iIf it is not given under an agreement but solely due to discretion, it may still be claimed on ground sof discrimination, if denied to any particualr empoyee, depending up on the merits of teh case.
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
I am afraid it is not true that bonus can only be claimed under law and not ex-gratia.If ex-gartia is paid pursuant to a settlemnt or agreement, it too can be claimed in appropriate forum. Even iIf it is not given under an agreement but solely due to discretion, it may still be claimed on ground sof discrimination, if denied to any particualr empoyee, depending up on the merits of teh case.
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
Dear Mr. Sai Kumar,
As you say, any payment, including ex-gratia, if covered under an Agreement, is definitely payable. But there are payments employers make to certain employees, outside written agreement and at the sole discretion of the employer, for various reasons. Such payments are generally termed as "ex-gratia". This kind of payments are generally made to all employees but there can be wilful omissions. These wilfully omitted employees cannot legally claim such payment because it is paid only to selected employees only.
Regards,
T. Chandran
From India, Kolkata
As you say, any payment, including ex-gratia, if covered under an Agreement, is definitely payable. But there are payments employers make to certain employees, outside written agreement and at the sole discretion of the employer, for various reasons. Such payments are generally termed as "ex-gratia". This kind of payments are generally made to all employees but there can be wilful omissions. These wilfully omitted employees cannot legally claim such payment because it is paid only to selected employees only.
Regards,
T. Chandran
From India, Kolkata
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Amendment to Payment of Bonus Act 2015.jpg
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