Hi,
We have a Diwali bonus for all our office boys staff. We also have a bonus when any employee completes his/her 5 years with the organization. In both the cases, an employee gets his/her additional salary as a bonus amount.
Here is my question - If the gross salary of the office boy is 9,000 p.m. and he has PF, PT and gratuity deductions on this amount. So, should he get a complete 9,000 rs bonus or these deductions are applicable again on the bonus amount as well? Like bonus will be another salary with all the mentioned deductions?
Please help, thanks.
From India, Ulhasnagar
We have a Diwali bonus for all our office boys staff. We also have a bonus when any employee completes his/her 5 years with the organization. In both the cases, an employee gets his/her additional salary as a bonus amount.
Here is my question - If the gross salary of the office boy is 9,000 p.m. and he has PF, PT and gratuity deductions on this amount. So, should he get a complete 9,000 rs bonus or these deductions are applicable again on the bonus amount as well? Like bonus will be another salary with all the mentioned deductions?
Please help, thanks.
From India, Ulhasnagar
PF needs to be paid only on basic + da (at least till the new amendment to PF is passed), so bonus is not covered on it.
ESIC is on gross wages, so it is to be paid on bonus also.
I don't know any law that provides deduction for gratuity. It's illegal to deduct any amount for gratuity. You will be in big trouble.
On PT, being a state subject, no answer can be given without checking the definition of wages in your state act. In general, it's better to,pay PF on higher amount. Being small, it does not pinch and keeps you safe.
From India, Mumbai
2392ESIC is on gross wages, so it is to be paid on bonus also.
I don't know any law that provides deduction for gratuity. It's illegal to deduct any amount for gratuity. You will be in big trouble.
On PT, being a state subject, no answer can be given without checking the definition of wages in your state act. In general, it's better to,pay PF on higher amount. Being small, it does not pinch and keeps you safe.
From India, Mumbai
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