Dear all,
I am working in a advertisement company that is newly start up...we have to make the salary breakup of the new employees. I have a question to ask you that if we will show the bonus in their breakup so are they entitle to get bonus in this year as bonus always paid for the last year working...
plz guide i m fresher in HR i need ur support....
Thanks
Poja
From India, Delhi
1I am working in a advertisement company that is newly start up...we have to make the salary breakup of the new employees. I have a question to ask you that if we will show the bonus in their breakup so are they entitle to get bonus in this year as bonus always paid for the last year working...
plz guide i m fresher in HR i need ur support....
Thanks
Poja
From India, Delhi
I think you talking about statutory bonus under Payment of Bonus Act.
Statutory bonus should not be a component of the gross salary, it is a stautory obligation of the employer to pay bonus calculated on the profit/loss of the company, apart from the fixed monthly wages to employees, if applicable.
regards,
Kamal
From India, Pune
Statutory bonus should not be a component of the gross salary, it is a stautory obligation of the employer to pay bonus calculated on the profit/loss of the company, apart from the fixed monthly wages to employees, if applicable.
regards,
Kamal
From India, Pune
Dear Pooja
The statutory bonus @ 8.33% (minimum) is paid only for the previous financial year and also if the employee has worked for atleast 30 days in previous financial year. If you are paying bonus in November 2011, it will be related to year April 2010 to March 2011. Now if employee is not working till 31.03.2011, there is no question of payment of bonus. He will be paid bonus only in November 2012 or October 2012 (Diwali time). You can show the bonus in CTC of an employee and to be at safer side you can add the note in his letter as "payment of bonus shall be subjected to the provisions of Payment of Bonus Act 1965". This sentence will take care of all your apprehnsions.
From India, Mumbai
The statutory bonus @ 8.33% (minimum) is paid only for the previous financial year and also if the employee has worked for atleast 30 days in previous financial year. If you are paying bonus in November 2011, it will be related to year April 2010 to March 2011. Now if employee is not working till 31.03.2011, there is no question of payment of bonus. He will be paid bonus only in November 2012 or October 2012 (Diwali time). You can show the bonus in CTC of an employee and to be at safer side you can add the note in his letter as "payment of bonus shall be subjected to the provisions of Payment of Bonus Act 1965". This sentence will take care of all your apprehnsions.
From India, Mumbai
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