Hi need help understanding 1 point. In private companies, a bonus is paid as 8.33% of the basic salary & it has no bar on the range. This means if 1st employee is getting basic as 10000 & 2nd as 29000 then both bonuses will be calculated @ 8.33% of basic. But as per statutory bonus act rules are - Payable to all employees whose wages do not exceed Rs.21,000 per month & If employee’s wages equal to or more than Rs. 7,000 or the minimum wages fixed by the Government then the bonus is paid as per employee’s wages. So what are the actual rule if bonus is part of ctc.
From India, Saharanpur
From India, Saharanpur
It depends upon the offer given to the employee. If the amount of bonus is given as "subject to rules in force" then the amount shown shall change based on the statutory provision with regard to payment of bonus whereas if the amount is calculated on the basic salary without reference to law/ without any qualifying condition then it should be paid in actual. Still, proportionate reduction for the loss of pay shall be made from the quoted amount of bonus.
From India, Kannur
4244From India, Kannur
Bonus may be Statutory or extra legal which is beyond statutory. Any TYPE of Bonus should be the part of CTC .Extra legal Bonus is paid as per Organizations policy. But statutory Bonus is based on Gross Profit on the particular Financial year, Available Surplus, allocable surplus, Set on & Set off. % of Bonus is determined based on all above. It varies between 8.33% to 20% .
For Statutory bonus , the employees whose salary is 21,000/- per month are eligible and calculation is made based on 7000/- salary or minimum wages which ever is higher.
For non statutory bonus which is as per act not calculated as per payment of Bonus act is also known as customary bonus.
There is a perception that Bonus is only 8.33% is absolutely wrong. Statutory Bonus may vary between 8.33% and 20% based on calculation.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
For Statutory bonus , the employees whose salary is 21,000/- per month are eligible and calculation is made based on 7000/- salary or minimum wages which ever is higher.
For non statutory bonus which is as per act not calculated as per payment of Bonus act is also known as customary bonus.
There is a perception that Bonus is only 8.33% is absolutely wrong. Statutory Bonus may vary between 8.33% and 20% based on calculation.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
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Payment of Bonus (Amdmt) Rules 2019.pdf
Payment of Bonus Rules 1975.doc