Dear seniors,
I need one clarification under the payment of bonus Act that we have 150 employees, the payment bonus percentages minimum is 8.33 % and max 20%. My question is can we calculate the bonus percentage to same all employees or different percentage
1. “A” employee having 8.33 %
2. “ B” Employee having 12 %
3. “C” employee having 11%
We have follow this method . please let me its legally correct ?
From India, Coimbatore
46I need one clarification under the payment of bonus Act that we have 150 employees, the payment bonus percentages minimum is 8.33 % and max 20%. My question is can we calculate the bonus percentage to same all employees or different percentage
1. “A” employee having 8.33 %
2. “ B” Employee having 12 %
3. “C” employee having 11%
We have follow this method . please let me its legally correct ?
From India, Coimbatore
The questioner should have given the specific reasons for such an arrangement; even then certainly it will be a matter of discrimination.
From India, Salem
From India, Salem
Greetings
One cannot make any discrimination in payment of bonus. But it is possible tomake it at the time of appraisal. Please pay the minimum 8.33 % of of bonus to all the employees and declare the Exgratia amount to all the employees on the basis of their performance. In exgratia discrimination can be based on performance and no one can question. But in bonus you cannot discriminate.
From India, Kumbakonam
One cannot make any discrimination in payment of bonus. But it is possible tomake it at the time of appraisal. Please pay the minimum 8.33 % of of bonus to all the employees and declare the Exgratia amount to all the employees on the basis of their performance. In exgratia discrimination can be based on performance and no one can question. But in bonus you cannot discriminate.
From India, Kumbakonam
My dear Anonymous,
I agree with Sh Bhaskar,our Super Moderator that we cannot have discrimination in payment of bonus under the Payment of Bonus Act,1965. An "employee" under Section 2(13) has been defined as any person (other than an apprentice) employed on a salary or wage not exceeding ten thousand rupees per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied. As such you are free to decide any amount in the form of ex-gratia to the employees drawing salary more than Rs 10,000/-per month. Any discrimination in the payment of bonus otherwise would be illegal & unjustified.
BS Kalsi
Member since Aug 2011
From India, Mumbai
I agree with Sh Bhaskar,our Super Moderator that we cannot have discrimination in payment of bonus under the Payment of Bonus Act,1965. An "employee" under Section 2(13) has been defined as any person (other than an apprentice) employed on a salary or wage not exceeding ten thousand rupees per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied. As such you are free to decide any amount in the form of ex-gratia to the employees drawing salary more than Rs 10,000/-per month. Any discrimination in the payment of bonus otherwise would be illegal & unjustified.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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