We are having 15% as production bonus as part of monthly salary paid quarterly. This is apart from statutory bonus.
Section 36 says maximum bonus can be paid is 20% including production linked bonus.
Please advise on this
From India, Ahmedabad
Section 36 says maximum bonus can be paid is 20% including production linked bonus.
Please advise on this
From India, Ahmedabad
First of all it is not under Sec-36 rather it is under Sec- 26 (5) of Wage code. There are two things - Production/productivity linked bonus and another is production incentive.
The first one is determined by an agreement or settlement between the employer and the employees and the second one is based on production incentive scheme by Work & Motion study and payment vary individual to individual based on performance. In first case it is overall agreement/settlement to pay certain % of bonus if the organization achieved certain level of production/productivity at the end of the year. This is adjusted against the total 20% of Bonus if the allocable surplus is sufficient to pay 20%.
It is not clear from the post whether it is Production incentive based on work and motion study paid qrtly to avoid ESIC payment or the first one. Many organizations have nomenclature production incentive as Production Bonus.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
336The first one is determined by an agreement or settlement between the employer and the employees and the second one is based on production incentive scheme by Work & Motion study and payment vary individual to individual based on performance. In first case it is overall agreement/settlement to pay certain % of bonus if the organization achieved certain level of production/productivity at the end of the year. This is adjusted against the total 20% of Bonus if the allocable surplus is sufficient to pay 20%.
It is not clear from the post whether it is Production incentive based on work and motion study paid qrtly to avoid ESIC payment or the first one. Many organizations have nomenclature production incentive as Production Bonus.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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