Hiiii
Everyone
Actually I have one querry regarding Bonus
Actually bonus minimum limit is 8.33% and maximum is 20%
But I donot know about ex-gratia when exgrartia applicable.
Is it mandatory by law to pay exgratia or not.
Plz help me out.
Regards
Pooja Verma :( :cry: :( :cry:
From India, Pune
4Everyone
Actually I have one querry regarding Bonus
Actually bonus minimum limit is 8.33% and maximum is 20%
But I donot know about ex-gratia when exgrartia applicable.
Is it mandatory by law to pay exgratia or not.
Plz help me out.
Regards
Pooja Verma :( :cry: :( :cry:
From India, Pune
Hi Pooja
Ex-gratia amount is not mandatory to pay. Its depend on management wish. If a company is paying more than 8.33% then the balance excess amount more than 8.33% is called ex-gratia. Some times company pay bonus to that employees who are not covered under Payment of Bonus Act, that amount is also called ex-gratia amount.
Hope it will clear.
Regards
L.C. Pal
From India, Delhi
Ex-gratia amount is not mandatory to pay. Its depend on management wish. If a company is paying more than 8.33% then the balance excess amount more than 8.33% is called ex-gratia. Some times company pay bonus to that employees who are not covered under Payment of Bonus Act, that amount is also called ex-gratia amount.
Hope it will clear.
Regards
L.C. Pal
From India, Delhi
Hello,
It is the Payment of Bonus Act 1965 that has defined the concepts-terms and rules regarding "Minimum Bonus" and "Maximum Bonus". Any payment made in conformity with stipulations of this act is called "Bonus under tha act" and those who are covered by the act receive it as per the provisions of the act.
Ex-gratia, as tha name reveals is something "gratis" meaning "by the free will without any strings attached". In our context either when Bonus bonus is NOT payable under the act due to its non-aplicability, or in addition to any amount of payable as Bonus under the act, if an employer "wishes" to pay for whatever reasons, then it will be called "ex-gratia"
Bonus has to be paid only in conformity with provision of the act and the ex-gratia is a purely revenue payment.
If the concept is not clear OR you need to ask more questions, I will try to satisfy you desire to seek answers!
Regards
samvedan
October 21, 2007
-----------
From India, Pune
It is the Payment of Bonus Act 1965 that has defined the concepts-terms and rules regarding "Minimum Bonus" and "Maximum Bonus". Any payment made in conformity with stipulations of this act is called "Bonus under tha act" and those who are covered by the act receive it as per the provisions of the act.
Ex-gratia, as tha name reveals is something "gratis" meaning "by the free will without any strings attached". In our context either when Bonus bonus is NOT payable under the act due to its non-aplicability, or in addition to any amount of payable as Bonus under the act, if an employer "wishes" to pay for whatever reasons, then it will be called "ex-gratia"
Bonus has to be paid only in conformity with provision of the act and the ex-gratia is a purely revenue payment.
If the concept is not clear OR you need to ask more questions, I will try to satisfy you desire to seek answers!
Regards
samvedan
October 21, 2007
-----------
From India, Pune
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