Hello to all, I want to asked two things : 1) Can company give bonus in the name of Increment. 2) Bonus or Increment is different things. Thanks & Regards Amit
From India, Jalalpur
16From India, Jalalpur
Bonus-means extra Dividend, Sharing of profit, paid Annually asper The Payment of Bonus Act, 1965 Increment-means increasing Salary on Yearly basis but paid along with monthly Salary
From India, New Delhi
From India, New Delhi
Hello ,
In my company they just pay the bonus to there employee and management consider it as a increment.
Its a right policy. if not then what should we do for this.
Is there is any Act or govt. policy as a proof where govt. mention that company should provide both the things differently. so, that we show that to our company HR person.
Thanks & Regards.
Amit
From India, Jalalpur
In my company they just pay the bonus to there employee and management consider it as a increment.
Its a right policy. if not then what should we do for this.
Is there is any Act or govt. policy as a proof where govt. mention that company should provide both the things differently. so, that we show that to our company HR person.
Thanks & Regards.
Amit
From India, Jalalpur
Dear please go through The payment of Bonus Act, 1965 & The Minimum Wages Act, 1948 & relevant Minimum Wages Rules of State & applicable Minimum Wages Notification for your industry.All these are very much available in the site
From India, New Delhi
From India, New Delhi
Please understand the difference between bonus and increment. The Bonus is in addition to your annual / monthly salary which is going to be paid once in a year positively between April to November of every year.
Example : If your monthly salary is Rs.20000/- per month you may be getting Rs.20000/- per month and once in a year you will paid the Bonus.
In case the Management decided to pay your bonus amount of Rs.16000/- in October along with your salary payable for the month
of October then you will get Rs.36000/- for that month
Your increment is based on your performance and it will be added in your salary. In general most of the organizations will evaluate the performance of the Individual and revise the salary effective from the salary payable for the month of April of every year.
Example: If your salary is Rs.20,000/- per month till the month of March & your increment is fixed @Rs.2000/- then your monthly salary will be @Rs.22000/- per month effective from April month and shall continue till March month of next year.
In this case you will be getting your salary + eligible bonus amount = Rs.22000+ Rs. 16000/- = Rs.38000/- or more in case the bonus amount is increased due to your salary increase.
Hope you are clear on this. Bonus amount is one time payment in every year where as the increment amount is added to your previous salary amount and continued to pay till the revision of your salary every month
Thanks
Kamesh
From India, Hyderabad
Example : If your monthly salary is Rs.20000/- per month you may be getting Rs.20000/- per month and once in a year you will paid the Bonus.
In case the Management decided to pay your bonus amount of Rs.16000/- in October along with your salary payable for the month
of October then you will get Rs.36000/- for that month
Your increment is based on your performance and it will be added in your salary. In general most of the organizations will evaluate the performance of the Individual and revise the salary effective from the salary payable for the month of April of every year.
Example: If your salary is Rs.20,000/- per month till the month of March & your increment is fixed @Rs.2000/- then your monthly salary will be @Rs.22000/- per month effective from April month and shall continue till March month of next year.
In this case you will be getting your salary + eligible bonus amount = Rs.22000+ Rs. 16000/- = Rs.38000/- or more in case the bonus amount is increased due to your salary increase.
Hope you are clear on this. Bonus amount is one time payment in every year where as the increment amount is added to your previous salary amount and continued to pay till the revision of your salary every month
Thanks
Kamesh
From India, Hyderabad
hello
Thankyou kamesh sir for this.
But in my company the management only give the bonus and that bonus they consider as Increment and that bonus they will paid when the employee completed his one year in the company.
so, i just want to know its a right method or not or if not then what we should do for this.
Is there is any govt. policy as proof which we show our management that "Bonus and Increment" should pay separately.
Thanks & Regards.
Amit
From India, Jalalpur
Thankyou kamesh sir for this.
But in my company the management only give the bonus and that bonus they consider as Increment and that bonus they will paid when the employee completed his one year in the company.
so, i just want to know its a right method or not or if not then what we should do for this.
Is there is any govt. policy as proof which we show our management that "Bonus and Increment" should pay separately.
Thanks & Regards.
Amit
From India, Jalalpur
Amit
It is definitely wrong policy. What is the percentage of bonus? Is it actually calculated as per the Act or just 8.33% is paid?
Just by writing two lines of query we can not guide you. But increment & bonus are different things.
From India, Mumbai
It is definitely wrong policy. What is the percentage of bonus? Is it actually calculated as per the Act or just 8.33% is paid?
Just by writing two lines of query we can not guide you. But increment & bonus are different things.
From India, Mumbai
As informed the Bonus amount is totally different from increment. Bonus needs to be paid as per Payment of Bonus act hence they cannot say it as increment. Payment of bonus is statutory obligation and it is annual & it need to be paid even employee who worked over and above 30 days.
Increment is revision of salary of the employee. You also need to check the minimum wages part also as per the applicable amount to the state where your organization is located hence you can inform your employer that Bonus is different and increment is different failing which your employees will approach the Labour department as your management is not paying the applicable Bonus amount ( as your employer is saying that the Bonus is increment)
As mentioned by Mr.Srikanth it will be difficult to suggest you until & unless we get full details. Better to meet a Senior HR professional locally, discuss & obtain advise and proceed.
Thanks
Kamesh
9704543443 /
From India, Hyderabad
Increment is revision of salary of the employee. You also need to check the minimum wages part also as per the applicable amount to the state where your organization is located hence you can inform your employer that Bonus is different and increment is different failing which your employees will approach the Labour department as your management is not paying the applicable Bonus amount ( as your employer is saying that the Bonus is increment)
As mentioned by Mr.Srikanth it will be difficult to suggest you until & unless we get full details. Better to meet a Senior HR professional locally, discuss & obtain advise and proceed.
Thanks
Kamesh
9704543443 /
From India, Hyderabad
If you pay an amount in the name of bonus it is not added to basic pay.But amount paid as increment is added to basic.This way both are different.
From India, Thiruvananthapuram
From India, Thiruvananthapuram
As we know bonus and increments are different, increment is gives once per year and is adding to our salary structure and we got it every month till the next increment, but bonus is single payment given to employee on behalf of company profit and it depending on every years and it should be variable pay not fixed many company give bonus amount a fixed amt since last 10 years or before it should be change.
From India, Pune
From India, Pune
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