Hi Everyone.
I am the HR Manager from Malaysia and incharge of HR management in one of a company located at Mumbai.
I need some clarification on the Bonus Act :
Our company pay 8.33%(as per Bonus Act) bonus during Diwali festival and 20% performance bonus after financial year which is in March every year.
Recently, our employees requesting to increase the 8.33% bonus and they mentioning that other companies are paying more than 8.33%.
I am conducting some survey on this and hope to receive some feedback for the HR professionals in India about the percentage paid by other companies in India.
Thanks in advance.
Vijay
From Malaysia, Bayan Lepas
I am the HR Manager from Malaysia and incharge of HR management in one of a company located at Mumbai.
I need some clarification on the Bonus Act :
Our company pay 8.33%(as per Bonus Act) bonus during Diwali festival and 20% performance bonus after financial year which is in March every year.
Recently, our employees requesting to increase the 8.33% bonus and they mentioning that other companies are paying more than 8.33%.
I am conducting some survey on this and hope to receive some feedback for the HR professionals in India about the percentage paid by other companies in India.
Thanks in advance.
Vijay
From Malaysia, Bayan Lepas
Vijay,
Few questions:
1) What is the salary? Below 10,000/-?
2) Is your copmany in India is less than 5 years or completed 5 years?
3) Is your copmany making a profit (PAT)
4) Are you allocating surplus in accounts books?
Based on the answers, clarity can be given.
Generally Bonus in India is paid as per the Bonus Act (Please do the reserach on google) which is minimum 8.33% of basic (calculated on maximum basic of 6500/- PM. Maximum can be 20%.
Performance bonus is totally diffrent component and do not mix with this bonus.
Regards,
From India, Pune
124Few questions:
1) What is the salary? Below 10,000/-?
2) Is your copmany in India is less than 5 years or completed 5 years?
3) Is your copmany making a profit (PAT)
4) Are you allocating surplus in accounts books?
Based on the answers, clarity can be given.
Generally Bonus in India is paid as per the Bonus Act (Please do the reserach on google) which is minimum 8.33% of basic (calculated on maximum basic of 6500/- PM. Maximum can be 20%.
Performance bonus is totally diffrent component and do not mix with this bonus.
Regards,
From India, Pune
Hi Vinod,
Thanks for your reply. Really appriciate that. Yes is a manufacturing company in Mumbai India base on profit and allocating surplus in accounts
Our company is paying 8.33% bonus during Diwali festival and another incentive bonus max 20 in March. Are we consider the better company compare to others.
Because our employee is asking for an increase for Bonus we pay during Diwali (more than 8.33%)
From Malaysia, Bayan Lepas
Thanks for your reply. Really appriciate that. Yes is a manufacturing company in Mumbai India base on profit and allocating surplus in accounts
Our company is paying 8.33% bonus during Diwali festival and another incentive bonus max 20 in March. Are we consider the better company compare to others.
Because our employee is asking for an increase for Bonus we pay during Diwali (more than 8.33%)
From Malaysia, Bayan Lepas
Legally you are right and there is no problem.
In case your management decides to pay more, it is your call. In case your employees are demanding more, ask them to show the comparative figures and legal provisions on which their demands are based.
In any case, you are paying them an additional amount by way of Performance Bonus.
Thanks,
Kind Regards,
Avika Kapoor
Vice President - Operations
Website: Kapgrow
From India, New Delhi
In case your management decides to pay more, it is your call. In case your employees are demanding more, ask them to show the comparative figures and legal provisions on which their demands are based.
In any case, you are paying them an additional amount by way of Performance Bonus.
Thanks,
Kind Regards,
Avika Kapoor
Vice President - Operations
Website: Kapgrow
From India, New Delhi
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