Hi,
I am working in a publicly listed company. Earlier, I was getting a gross salary of 25000/-. Now, the company has changed my salary structure. They reduced my HR amount (resulting in an effect on my income tax calculation) and added the same amount to the head of Interim Statutory Bonus. As a result, I am now receiving the same total amount of 25000/-. Out of this, 22500/- is salary and 2500/- is the Interim Statutory Bonus.
My questions are:
1. Is it possible to include Interim Statutory Bonus as a part of the monthly salary?
2. Can a company reduce your previously decided gross salary and add the Interim Statutory Bonus to it so that you receive the same amount as before?
Thanks.
From India, Delhi
Acknowledge(0)
Amend(0)
I am working in a publicly listed company. Earlier, I was getting a gross salary of 25000/-. Now, the company has changed my salary structure. They reduced my HR amount (resulting in an effect on my income tax calculation) and added the same amount to the head of Interim Statutory Bonus. As a result, I am now receiving the same total amount of 25000/-. Out of this, 22500/- is salary and 2500/- is the Interim Statutory Bonus.
My questions are:
1. Is it possible to include Interim Statutory Bonus as a part of the monthly salary?
2. Can a company reduce your previously decided gross salary and add the Interim Statutory Bonus to it so that you receive the same amount as before?
Thanks.
From India, Delhi
Acknowledge(0)Amend(0)
Bonus under the Payment of Bonus Act, 1965 pertaining to an accounting year is based on the annual performance of the establishment and the annual earnings of the employee under the head of "salary or wages" as defined under section 2(21) of the Act. Therefore, restructuring of the salary or wages of the employee by altering the quantum of any allowance other than D.A cannot have any impact on the quantum of the bonus under the Act, apart from the application of the ceiling on salary.
Statutory bonus, whether interim or final, cannot form part of the monthly salary. Normally, the company should not reduce the existing salary through such restructuring. However, since the employee's salary remains above the salary limit even after the restructuring, there will not be any change in the quantum of his bonus.
From India, Salem
Acknowledge(0)Amend(0)
6108Statutory bonus, whether interim or final, cannot form part of the monthly salary. Normally, the company should not reduce the existing salary through such restructuring. However, since the employee's salary remains above the salary limit even after the restructuring, there will not be any change in the quantum of his bonus.
From India, Salem
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.