Dear Friends
There is a proposal of Bill on Payment of Bonus Act, 2014. In this proposal the following changes will likely to be taken place.
1. A Proposal to increase the Eligibility limit from Rs.10,000/- to Rs. 18,000/-.
2. A Proposal to increase calculation ceiling from Rs. 3500/- to Rs. 6000/-
3. Further there might be some chances for increasing the percentile of minimum bonus from 8.33% to 11%.
Let us expect some positive changes in near future.
From India, Kumbakonam
1168There is a proposal of Bill on Payment of Bonus Act, 2014. In this proposal the following changes will likely to be taken place.
1. A Proposal to increase the Eligibility limit from Rs.10,000/- to Rs. 18,000/-.
2. A Proposal to increase calculation ceiling from Rs. 3500/- to Rs. 6000/-
3. Further there might be some chances for increasing the percentile of minimum bonus from 8.33% to 11%.
Let us expect some positive changes in near future.
From India, Kumbakonam
Dear Sir, Is there any notification so far in respect of bonus act.If any Pls share. Thaanks regards. Bijay
From India, Vadodara
From India, Vadodara
Need the expert opinion on below query:
At present, in my monthly CTC Ex-gratia/bonus component is included which is retained by the company and the accumulated amount is paid once in a year during Diwali. if someone leaves the company can the amount of ex-gratia be lapsed or it should be paid along with F&F?
As per my understanding, if the Ex-gratia component is included in Monthly CTC it means that it is considered to be a committed amount to the employee and must be paid irrespective of loss/profit of the company and the period of service tenure of the employee. e.g. XYZ's monthly CTC is 50000/- which includes 1500/- Ex-gratia which is being retained by the company on monthly basis and the accumulated amount (from April to March) being refunded every Diwali . if XYZ serves the company for 3 years and leaves in the month of May, can the amount retained from April last year to May current year towards Ex-gratia be forfeited giving an excuse that the employee is not available till diwali? please advise!!
From India, Mumbai
At present, in my monthly CTC Ex-gratia/bonus component is included which is retained by the company and the accumulated amount is paid once in a year during Diwali. if someone leaves the company can the amount of ex-gratia be lapsed or it should be paid along with F&F?
As per my understanding, if the Ex-gratia component is included in Monthly CTC it means that it is considered to be a committed amount to the employee and must be paid irrespective of loss/profit of the company and the period of service tenure of the employee. e.g. XYZ's monthly CTC is 50000/- which includes 1500/- Ex-gratia which is being retained by the company on monthly basis and the accumulated amount (from April to March) being refunded every Diwali . if XYZ serves the company for 3 years and leaves in the month of May, can the amount retained from April last year to May current year towards Ex-gratia be forfeited giving an excuse that the employee is not available till diwali? please advise!!
From India, Mumbai
Dear Sudha Acharya
Your Monthly Salary is above Rs.10000/-. Hence you are not eligible for any Bonus.
For ex-gratia it depends on the company's Policy and the Ex-gratia is paid for the employees based on their previous performance with expectation to perform in future also. In your case the Ex-gratia component the first may be good enough to consider for payment of Ex-gratia but as you have resigned there are chances for refusal of the same. It depends on your company's Policy.
From India, Kumbakonam
Your Monthly Salary is above Rs.10000/-. Hence you are not eligible for any Bonus.
For ex-gratia it depends on the company's Policy and the Ex-gratia is paid for the employees based on their previous performance with expectation to perform in future also. In your case the Ex-gratia component the first may be good enough to consider for payment of Ex-gratia but as you have resigned there are chances for refusal of the same. It depends on your company's Policy.
From India, Kumbakonam
If the ex gratia amount is shown as payable without any condition like "subject to company policy", then it is payable annually proportionate to the months/days worked. It is possible that in order to attract talents the company would have shown such variables in the salary break up and given a nick name, viz, CTC for the salary. But the companies do not know the actual costs they have to bear if ones files a suit for recovery of such amounts. Unfortunately, this kind of gimmicks in pay structure is available only in new generation companies or new generation HR. It is always good to have a transparent pay structure wherein the employee will understand what he is going to get at the end of the month. When we proudly that the HR has grown to such a summit that it is no longer the old Personnel management and we build relations, we create harmony among work, we maintain 100% transparency, ete etc, I wonder what relation these new generation HRs are building, what harmony they create, how can they say that the present HR is transparent? Is there any degree of transparency? I doubt. If there been any transparency, tthis kind of elements would not be there in the salary break up. Moreover, it is due to this that people will have more concerns about what they get by moth end.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
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Amendment to Payment of Bonus Act 2015.jpg
Proposal.doc
Online payment of PF mandatory from 1.1.2016.pdf