Dear All,
I have one query regarding the bonus.
As per my knowledge bonus is an extra amount which is to be given to the employee on yearly bases, proportionate to the profit made by the company in that year. This means this is a type of reward which is given by the company to the employees.
Then how can we include it as a part of CTC. I have seen many organizations who consider the bonus as part of CTC and pay it as yearly component. Is this a statuitory requirement or what?
Pl. guide me on the same.
waiting for your reply.
Thanks
Shweta G
From India, Mumbai
9I have one query regarding the bonus.
As per my knowledge bonus is an extra amount which is to be given to the employee on yearly bases, proportionate to the profit made by the company in that year. This means this is a type of reward which is given by the company to the employees.
Then how can we include it as a part of CTC. I have seen many organizations who consider the bonus as part of CTC and pay it as yearly component. Is this a statuitory requirement or what?
Pl. guide me on the same.
waiting for your reply.
Thanks
Shweta G
From India, Mumbai
THIS IS BECOME COMPANY FASHION TO INCLUDE EVERYTHING IN THE NAME OF CTC .YOU CAN INCLUDE PL/GRATUTY/BONUS/MEDICAL /SO COMPANY WILL NOT HAVE TO PAY YOU EXTRA
From India, Mumbai
From India, Mumbai
Dear Shweta,
No, its not statutory requirement to include bonus in CTC but yes lot many org. does it because actually CTC is Cost to Company i.e. how much employee is costing to company. therefore co. includes all the cost direct or indirect if they have to hire him. so they do include bonus amount as they have to give this amount to an employee at some point of time. Its upto you & your management whether to calculate employee actual cost by including it or if not then exclude it.
Regards,
Shilpi
From India, New Delhi
No, its not statutory requirement to include bonus in CTC but yes lot many org. does it because actually CTC is Cost to Company i.e. how much employee is costing to company. therefore co. includes all the cost direct or indirect if they have to hire him. so they do include bonus amount as they have to give this amount to an employee at some point of time. Its upto you & your management whether to calculate employee actual cost by including it or if not then exclude it.
Regards,
Shilpi
From India, New Delhi
Bonus range - 8.33 % of earned basic and DA to 20 % of earned basic and DA. Above 20 % is not called bonus. If management wants to give more than this, they have to give it as Ex=gratia. - Hiten
From India, New Delhi
From India, New Delhi
Hi Sumana 1 !
Yes, it is same as basic + da we consider in pf.
earned basic and da means actually earned basic + da (in case an employee is absent without leave approval / LWOP, his earned basic + da will be less than is projected basic or agreed basic and official da)
Further, the earned basic + da included any basic and da paid to employee as arrears for increment declared, effect of any settlement arrived after its due date and other adjustments.
Hope I have been able to reply as desired. Please let me have feedback.
Or ask for more sharing.
Regards,
- Hiten
From India, New Delhi
Yes, it is same as basic + da we consider in pf.
earned basic and da means actually earned basic + da (in case an employee is absent without leave approval / LWOP, his earned basic + da will be less than is projected basic or agreed basic and official da)
Further, the earned basic + da included any basic and da paid to employee as arrears for increment declared, effect of any settlement arrived after its due date and other adjustments.
Hope I have been able to reply as desired. Please let me have feedback.
Or ask for more sharing.
Regards,
- Hiten
From India, New Delhi
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Amendment to Payment of Bonus Act 2015.jpg
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