How to calculate longevity bonus for an employee at x% of yearly gross after 'x' number of years of service if an employee’s salary keep apprising every year?
From India, Kolkata
1From India, Kolkata
There is no provision in Labour Laws to cover the 'Longevity Bonus', except statutory bonus under the Payment of Bonus Act, i.e. 8.33% as per the norms of eligibility might apply. The 'Longevity Bonus' may be in vogue in a few units which is covered under different set of rules applicable only for such a firm and their employees, not generally applicable for every units.
From India, Bangalore
From India, Bangalore
And if I say Retention Fee or Retainer’s Fee. There are companies that gives retaintion fee to their employees.
From India, Kolkata
From India, Kolkata
Dear Sandip,
Retention fee/allowance is practiced by some Organizations. There are several schemes. For your ready reference I am mentioning few:-
1. It may be lump-sum amount payable after 3/5 years (adhoc basis)
2. 10% of CTC every year on increase CTC -say for 3 years. First year CTC-3,00,000/- Retention allowance was 30,000/- ; 2nd year CTC say 3,50,000/- and Retention allowance is 35,000/- and 3rd year it is CTC 4,00,000/- and Retention allowance - 40,000/-. The pay out may be in one go i.e 30,000 + 35,000 + 40,000 = 1,05,000/- or the pay out may be 3 consecutive years i.e. in 4th, 5th & 6th year.
3. There may be many other schemes.
Thanks & Regards,
S K Bandyopadhyay ( Howrah, WB)
From India, New Delhi
Retention fee/allowance is practiced by some Organizations. There are several schemes. For your ready reference I am mentioning few:-
1. It may be lump-sum amount payable after 3/5 years (adhoc basis)
2. 10% of CTC every year on increase CTC -say for 3 years. First year CTC-3,00,000/- Retention allowance was 30,000/- ; 2nd year CTC say 3,50,000/- and Retention allowance is 35,000/- and 3rd year it is CTC 4,00,000/- and Retention allowance - 40,000/-. The pay out may be in one go i.e 30,000 + 35,000 + 40,000 = 1,05,000/- or the pay out may be 3 consecutive years i.e. in 4th, 5th & 6th year.
3. There may be many other schemes.
Thanks & Regards,
S K Bandyopadhyay ( Howrah, WB)
From India, New Delhi
Dear friends,
Adverting to my earlier post, various allowances, perks, concessions, payments, incentives etc being practiced by different firms. When saying so, I only mean to opine they have no statutory status as mandatory/compulsory. But there is no bar in paying their employees in whatsoever names they would be assigning. However in doing so, an employer should be aware implications as per the respective Definitions "Salary/wages", 'perks' etc as indicated in the Acts/laws which would have a bearing in determining quantum of contributions/payments for 'EPF, ESI, Bonus, Gratuity, F&F settlement, IT/PT, Pension etc at appropriate time. Sometimes may expose to litigations and resultant fines/penalty impose by the authorities when these unconventional benefits to employees are not reckoned for some purposes appropriately. So far as I know payments to regular employees only with the purpose of retaining with them are not considered as 'Retainer fees' though they are retained with additional payments, either in the form of lumpsum/addl.increments/promoting to next scale-grade etc.
Re:'Retention Fees'/Retainers' fees etc., this term is generally used for 'retaining' knowledgeable/dedicated/resourceful employees are when separated especially on superannuation etc. When the firms' HR policy has no provision to approve extension of their services beyond the retiring age, they are retained normally as 'Consultants' or 'Retainers'. Remuneration for them, either fixed sum or with periodical enhancements are common. Highly influential employees who are resourceful for firms business promotions. Similarly employees exiting from other firms in same sector, govt.officials, politically influential, kith & kin of senior officials and so on could be bracketed under this category.
From India, Bangalore
Adverting to my earlier post, various allowances, perks, concessions, payments, incentives etc being practiced by different firms. When saying so, I only mean to opine they have no statutory status as mandatory/compulsory. But there is no bar in paying their employees in whatsoever names they would be assigning. However in doing so, an employer should be aware implications as per the respective Definitions "Salary/wages", 'perks' etc as indicated in the Acts/laws which would have a bearing in determining quantum of contributions/payments for 'EPF, ESI, Bonus, Gratuity, F&F settlement, IT/PT, Pension etc at appropriate time. Sometimes may expose to litigations and resultant fines/penalty impose by the authorities when these unconventional benefits to employees are not reckoned for some purposes appropriately. So far as I know payments to regular employees only with the purpose of retaining with them are not considered as 'Retainer fees' though they are retained with additional payments, either in the form of lumpsum/addl.increments/promoting to next scale-grade etc.
Re:'Retention Fees'/Retainers' fees etc., this term is generally used for 'retaining' knowledgeable/dedicated/resourceful employees are when separated especially on superannuation etc. When the firms' HR policy has no provision to approve extension of their services beyond the retiring age, they are retained normally as 'Consultants' or 'Retainers'. Remuneration for them, either fixed sum or with periodical enhancements are common. Highly influential employees who are resourceful for firms business promotions. Similarly employees exiting from other firms in same sector, govt.officials, politically influential, kith & kin of senior officials and so on could be bracketed under this category.
From India, Bangalore
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