Dear..All, Please inform me regarding Extra Gratia..? Some companies pay as Bonus+Ex. Gratia... SO Please inform me!
From India, Hyderabad
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12From India, Hyderabad
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Exgratia is the favour extended to the employees depending on the financial standings of the company. Not mandatory. Pon
From India, Lucknow
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From India, Lucknow
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Dear Moger,
One common example of an ex gratia payment is an extra payment made to an employee when she is laid off. A company may offer benefits above those mandated by law as an expression of thanks for service or to compensate for the job loss. The company is not admitting any wrongdoing by offering this expression of goodwill, and the employee could chose to turn the payment down if there was a compelling reason to do so.
Regards
Mukesh sharma
From India, Delhi
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One common example of an ex gratia payment is an extra payment made to an employee when she is laid off. A company may offer benefits above those mandated by law as an expression of thanks for service or to compensate for the job loss. The company is not admitting any wrongdoing by offering this expression of goodwill, and the employee could chose to turn the payment down if there was a compelling reason to do so.
Regards
Mukesh sharma
From India, Delhi
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(Fact Checked)-The user's reply is correct. It accurately explains ex gratia payments as voluntary additional payments made by a company to employees, typically in situations like layoffs, as a gesture of goodwill without admitting any legal obligation. Well done! (1 Acknowledge point)
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Dear Mr. Moger,
Bonus is paid to the employees who are drawing salary upto Rs. 10,000/- p.m. whereas Ex-gratia is paid to those employees who are drawing salary more than Rs. 10,000/- p.m. The difference between bonus and ex-gratia is that bonus is mandatory and ex-gratia is optional.
The rate of bonus may be 8.33% (minimum) or above as per Company's policy.
From India, Lucknow
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Bonus is paid to the employees who are drawing salary upto Rs. 10,000/- p.m. whereas Ex-gratia is paid to those employees who are drawing salary more than Rs. 10,000/- p.m. The difference between bonus and ex-gratia is that bonus is mandatory and ex-gratia is optional.
The rate of bonus may be 8.33% (minimum) or above as per Company's policy.
From India, Lucknow
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(Fact Check Failed/Partial)-The user's reply is partially correct. Bonus and Ex-gratia are governed by different laws and are not solely dependent on the salary amount. Bonus is mandatory under the Payment of Bonus Act, 1965, while Ex-gratia is discretionary. The Payment of Bonus Act mandates payment of bonus to employees earning up to Rs. 21,000 per month. Ex-gratia can be paid to employees regardless of their salary level, but it is not a legal requirement. The distinction between the two is not solely based on the salary level. The rate of bonus payment is not fixed at 8.33%, it can vary based on company policy but should not be less than 8.33%.
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Hi Mr. C S Shukla, I wanted to Know wat if a company shows Ex gratia in CTC. is it compulsory to pay???
From India, Hyderabad
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From India, Hyderabad
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(Fact Checked)-The mention of Ex gratia in CTC doesn't necessitate payment. It's discretionary. Reference: Labour law principles. (1 Acknowledge point)
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Although, it is not compulsory but Companies pay ex-gratia. Amount of the ex-gratia may be vary from Company to Company, according to the policy of the Company. Further, it can not be taken into CTC because it is not certain.
From India, Lucknow
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From India, Lucknow
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(Fact Checked)-The user's reply is mostly correct. Ex-gratia is voluntary and varies between companies. It should not be considered part of CTC. However, it can have legal implications in some cases. (1 Acknowledge point)
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In bonus paying there is ceiling of 3500. The employees whose basic is more than 3500 also get bonus on 3500.
If the employer declare bonus on the actual basic and not on the 3500. Then this extra amount will also called EXTRA GRATIA.
And if employer declares bonus for the employees whose basic is more than 10000. then this amount is also called EXTRA GRATIA.
From India, Gurgaon
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If the employer declare bonus on the actual basic and not on the 3500. Then this extra amount will also called EXTRA GRATIA.
And if employer declares bonus for the employees whose basic is more than 10000. then this amount is also called EXTRA GRATIA.
From India, Gurgaon
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(Fact Check Failed/Partial)-The user reply contains inaccuracies. According to the Payment of Bonus Act, the calculation of bonus is not capped at Rs. 3500 for employees with a basic salary above that. This Act mandates a minimum bonus of 8.33% of the annual salary, with a cap on salary at Rs. 7000 per month for calculation purposes.
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For max, no ceiling. — — — — — — — — — — - Pon
From India, Lucknow
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From India, Lucknow
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(Fact Check Failed/Partial)-[The maximum percentage of bonus can vary based on the laws and company policies. There may be legal limitations or industry standards to consider. It's essential to consult labor laws and your company's HR policies for accurate information. Thank you for your question.]
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Thank u for the reply Mr. Shukla, Though bonus/ Ex gratia is can not be taken into CTC, but company shows it in CTC. still its in the company’s hand whether to pay not to pay Bounus
From India, Hyderabad
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From India, Hyderabad
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(Fact Check Failed/Partial)-The information provided is partially correct. Ex gratia can be part of CTC. However, the company must follow legal requirements when deciding on bonus payments.
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Mr. Mogar
Bonus payable limit is Rs. 3500/-. If one man having 5000 as a Basic then Company have to pay bonus on 3500/-.
IN other case, company wants to pay him on actual basic then Company can pay Bonus on 3500 and Ex-gratia on 1500/-.
Rgd
Ashok
From India, Ahmadabad
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Bonus payable limit is Rs. 3500/-. If one man having 5000 as a Basic then Company have to pay bonus on 3500/-.
IN other case, company wants to pay him on actual basic then Company can pay Bonus on 3500 and Ex-gratia on 1500/-.
Rgd
Ashok
From India, Ahmadabad
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(Fact Check Failed/Partial)-The information provided is incorrect. According to the Payment of Bonus Act, 1965, the calculation of bonus is based on a different formula. The bonus payable limit is not fixed at Rs. 3500. Please refer to the Payment of Bonus Act for accurate details.
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(Fact Check Failed/Partial)-The user's reply is partially correct. Ex-gratia is not a favor but an amount paid voluntarily to employees. It is not mandatory but can be given based on various factors like financial performance.