@ Vijay Steven - Please do not communicate incorrect information on the portal. In case you are not sure about the answer, it's better not to post on threads.
Bonus is a statutory payment and has nothing to do with the performance of an employee. As per the Bonus Act, an employee who has completed 30 days with an organization is eligible to receive Bonus payment, but he will not receive it along with the full and final settlement as in his case he has resigned in the month of December. The bonus is paid in the next financial year, preferably around Diwali time. If the employee has joined in the month of June, he will receive his bonus payments next year around Diwali.
Regards, Shweta Gehlot
From India, Delhi
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9Bonus is a statutory payment and has nothing to do with the performance of an employee. As per the Bonus Act, an employee who has completed 30 days with an organization is eligible to receive Bonus payment, but he will not receive it along with the full and final settlement as in his case he has resigned in the month of December. The bonus is paid in the next financial year, preferably around Diwali time. If the employee has joined in the month of June, he will receive his bonus payments next year around Diwali.
Regards, Shweta Gehlot
From India, Delhi
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Email: Shweta.Gehlot@Yahoo.com
Firstly, please read your email before sending it. My name is misspelled.
Also, with regards to a bonus, if you are talking about the non-IT industry, then you may follow the Bonus Act. For IT companies, bonuses are always and will be performance-driven.
I have given the meaning of a bonus. Nevertheless, let us be clear while communicating if it is for Non-IT or IT.
I am not convinced. How can you award or be applicable to an employee with a bonus in one month? What value does the employee bring to the organization, and what happens to the cost to hire?
From India, Pune
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Firstly, please read your email before sending it. My name is misspelled.
Also, with regards to a bonus, if you are talking about the non-IT industry, then you may follow the Bonus Act. For IT companies, bonuses are always and will be performance-driven.
I have given the meaning of a bonus. Nevertheless, let us be clear while communicating if it is for Non-IT or IT.
I am not convinced. How can you award or be applicable to an employee with a bonus in one month? What value does the employee bring to the organization, and what happens to the cost to hire?
From India, Pune
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Payment of Bonus Act is applicable to all types of companies where there is an employer-employee relationship. The Act stipulates the grant of a minimum compulsory bonus for eligible employees and addresses bonuses above the minimum ceiling, accounting for surplus allocations.
In this case, eligibility for a bonus is contingent upon the aforementioned provisions. For clarity on probation, it is important to understand its implications for an employee. The terms and conditions of probation should be clearly explained and outlined in the offer or joining letter.
It is crucial to determine whether probation includes clauses denying statutory compliance or bonus entitlement. Employers can indeed establish such terms and conditions for employee probation.
In the unfortunate event that a probationary employee passes away while on duty, the responsibility of the employer for compensation should not be absolved solely due to the absence of compliance during probation.
It is assumed that in any establishment or company where an employer-employee relationship exists, the relevant labor laws and social security obligations are applicable.
From India, Vadodara
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In this case, eligibility for a bonus is contingent upon the aforementioned provisions. For clarity on probation, it is important to understand its implications for an employee. The terms and conditions of probation should be clearly explained and outlined in the offer or joining letter.
It is crucial to determine whether probation includes clauses denying statutory compliance or bonus entitlement. Employers can indeed establish such terms and conditions for employee probation.
In the unfortunate event that a probationary employee passes away while on duty, the responsibility of the employer for compensation should not be absolved solely due to the absence of compliance during probation.
It is assumed that in any establishment or company where an employer-employee relationship exists, the relevant labor laws and social security obligations are applicable.
From India, Vadodara
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It depends on the company's policy and procedures. However, in practice, a bonus, to my understanding, generally has a frequency associated with it. What I mean is if it is quarterly and an employee has completed that part of the time, then they are eligible for the bonus from the previous quarter. I have experienced a case where, in an MNC, my bonus was included in my monthly compensation. Thanks.
From India
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From India
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Dear Vijaya Madam,
I work for an IT company, but I have never heard of performance-driven initiatives. In fact, I am unfamiliar with individual performance-driven bonuses. What you are referring to is likely Performance Incentive (PI). Bonuses are typically determined at the organizational level based on the company's performance. In the IT sector, bonuses are usually set at a standard rate of 8.33%, whereas in the manufacturing sector, bonuses can be as high as 30%.
Thank you.
From India, Bengaluru
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I work for an IT company, but I have never heard of performance-driven initiatives. In fact, I am unfamiliar with individual performance-driven bonuses. What you are referring to is likely Performance Incentive (PI). Bonuses are typically determined at the organizational level based on the company's performance. In the IT sector, bonuses are usually set at a standard rate of 8.33%, whereas in the manufacturing sector, bonuses can be as high as 30%.
Thank you.
From India, Bengaluru
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If in a mfg. industry all employee getting bonus. If an employee having monthly salary 21100/-(basic 16100+hra 3000+conveyance 2000) whether he is eligible to get bonus or not.
From India, Bhogpur
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From India, Bhogpur
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Dear Mahesh, He is eligible to get bonus as his salary is Rs. 16000/- per month. Other components are not to be considered as salary under Payment of Bonus Act, 1965. R N KHOLA
From India, Delhi
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From India, Delhi
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Yes he is eligible for bonus if he has worked for more than 30 days and Basic Salary is not more than 21000/ per month.
From India, Indore
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From India, Indore
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Hi Augustine Joseph,
I am working, and my basic salary is Rs. 24,870. I am eligible for a bonus. My basic salary has remained the same since 2014. I received a bonus in 2013-14, but after that, they have not given any bonus for the last four years. Please confirm if I am eligible for a bonus.
Thank you.
From India, New Delhi
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I am working, and my basic salary is Rs. 24,870. I am eligible for a bonus. My basic salary has remained the same since 2014. I received a bonus in 2013-14, but after that, they have not given any bonus for the last four years. Please confirm if I am eligible for a bonus.
Thank you.
From India, New Delhi
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