Hi, All Experts HR, I want to know about Yearly Bonus Release Criteria.
Suppose Any New Employee has joined from May 2023. Is he/she eligible to get a yearly bonus (Bonus Cycle Jan to Dec.)
kindly share your comments/openion.
From India, Jamnagar
Suppose Any New Employee has joined from May 2023. Is he/she eligible to get a yearly bonus (Bonus Cycle Jan to Dec.)
kindly share your comments/openion.
From India, Jamnagar
If he worked at least 30 days in your company then he will be eligible for bonus till the date of his tenure.
From India, Delhi
From India, Delhi
No, he is not eligible for a Bonus during the year 2023 but surely get it on or before 31.08.2024 for the calendar year 2023. (Subject to his Basic plus DA is up to Rs.21000 per month) Suresh
From India, Thane
246From India, Thane
Hi,
The eligibility for a yearly bonus typically depends on the company's specific policies and practices. There is no universal standard, and each organization may have its own criteria for determining bonus eligibility. Here are some common factors that companies might consider when determining eligibility for a yearly bonus:
Length of Service:
Many companies require employees to have worked for a certain period (often a full year) before they become eligible for a yearly bonus. In your example, if the employee joined in May 2023, they may not be eligible for the bonus for that year, as they haven't completed a full year of service.
Performance:
Some companies tie bonuses to individual or team performance. This could be assessed based on factors like annual performance reviews, achievement of goals, or other performance metrics.
Employment Status:
Employees who are in good standing and in an active employment status at the time of bonus distribution are usually eligible. This means they shouldn't be on extended leave (like maternity or medical leave) or facing any disciplinary actions.
Pro-Rated Bonuses:
Some companies may offer pro-rated bonuses for employees who have not worked the full year. For example, if the bonus is based on a percentage of annual salary, a new employee who worked for only half the year might receive half of the full bonus.
Company Profitability:
In some cases, bonuses are tied to the financial performance of the company. If the company is not profitable, it may not offer bonuses that year.
Specific Job Roles:
Certain roles or departments may have different bonus structures. For example, sales teams often have bonuses tied to meeting or exceeding sales targets.
Discretion of Management:
Ultimately, the decision to award a bonus is often at the discretion of the company's management or leadership. They may consider various factors, including the ones listed above.
Thanks
From India, Bangalore
The eligibility for a yearly bonus typically depends on the company's specific policies and practices. There is no universal standard, and each organization may have its own criteria for determining bonus eligibility. Here are some common factors that companies might consider when determining eligibility for a yearly bonus:
Length of Service:
Many companies require employees to have worked for a certain period (often a full year) before they become eligible for a yearly bonus. In your example, if the employee joined in May 2023, they may not be eligible for the bonus for that year, as they haven't completed a full year of service.
Performance:
Some companies tie bonuses to individual or team performance. This could be assessed based on factors like annual performance reviews, achievement of goals, or other performance metrics.
Employment Status:
Employees who are in good standing and in an active employment status at the time of bonus distribution are usually eligible. This means they shouldn't be on extended leave (like maternity or medical leave) or facing any disciplinary actions.
Pro-Rated Bonuses:
Some companies may offer pro-rated bonuses for employees who have not worked the full year. For example, if the bonus is based on a percentage of annual salary, a new employee who worked for only half the year might receive half of the full bonus.
Company Profitability:
In some cases, bonuses are tied to the financial performance of the company. If the company is not profitable, it may not offer bonuses that year.
Specific Job Roles:
Certain roles or departments may have different bonus structures. For example, sales teams often have bonuses tied to meeting or exceeding sales targets.
Discretion of Management:
Ultimately, the decision to award a bonus is often at the discretion of the company's management or leadership. They may consider various factors, including the ones listed above.
Thanks
From India, Bangalore
If the employee joined in May 2023 will be eligible to get bonus in the financial year 2024-25 only. The conditions are:
(1) has worked for at least 30 days in 2023-24 (ie, a person joined in May 2023 should have worked at least for 30 days in this financial year)
(2) his salary should not be more than Rs 21000 per month.
From India, Kannur
(1) has worked for at least 30 days in 2023-24 (ie, a person joined in May 2023 should have worked at least for 30 days in this financial year)
(2) his salary should not be more than Rs 21000 per month.
From India, Kannur
The Views mentioned by Dr B V Raghunath are not in accordance with the provisions of the Payment of Bonus Act. The policy of any company cannot be in contravention of the provisions of the Payment of Bonus Act. Payment of excess bonus even for non eligible employees can be companies policy but no company can deny bonus to any employee who has worked for at least 30 days in an accounting year and whose salary is less than Rs. 21000/- .
The question asked is whether an employee is eligible to get bonus if he has joined in May 2023 when accounting year is from January, 2023 to December, 2023. As per Payment of Bonus Act, bonus has to be paid within 8 months from the closing of accounting year and employee who has worked atleast for 30 days and drawing wages below Rs. 21,000/- pm is eligible to get bonus. Therefore the employee who has joined in May 2023 is eligible to get bonus within 8 months from January, 2024 i.e. before August 2024 and therefore he will not get Bonus during the period from May 2023 to August, 2023.
From India, Pune
The question asked is whether an employee is eligible to get bonus if he has joined in May 2023 when accounting year is from January, 2023 to December, 2023. As per Payment of Bonus Act, bonus has to be paid within 8 months from the closing of accounting year and employee who has worked atleast for 30 days and drawing wages below Rs. 21,000/- pm is eligible to get bonus. Therefore the employee who has joined in May 2023 is eligible to get bonus within 8 months from January, 2024 i.e. before August 2024 and therefore he will not get Bonus during the period from May 2023 to August, 2023.
From India, Pune
Some companies have a prorated bonus system for employees who join mid-year. In this case, the bonus is calculated based on the portion of the year the employee has worked. For example, if the bonus cycle is from January to December, an employee joining in May might be eligible for a bonus based on their months of service.
retro bowl
From Sweden, Stockholm
retro bowl
From Sweden, Stockholm
There is no discretion or policy of the organization while making bonus payment as per PB Act. As Mr. Madhu TK has explained that if the condition of getting bonus is full filled the employee is eligible for bonus. Bonus to be paid for the financial year 2023 as the bonus cycle is Jan - Dec as per PB Act. in 2024.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
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