Bonus as part of CTC

Anurag Jain · #1 (**permalink**) 07-06-2008, 01:55 PM

Hi,

We have following queries:

1. The basis of bonus is 8.33% of Basic Salary max 20% of Basic ?

2. At present our company pays bonus equivalent to one months gross salary at the time of diwali and any person leaves the company before the diwali; the amount of bonus lapsed or not payable.

3. Can we add a proportionate part of bonus as part of CTC.

3. To exercise the legal compliance as well as the non payment of bonus for the leaving before diwali, can we exercise the following :

A. Payment of bonus with minium % @ 8.33 of Basic and be part in the CTC and rest amount of gross salary can be payable as an incentive and this can be lapse if such employee leaves before diwali.

Please guide in this regard.

Anurag Jain
09414407952

htdesai · #2 (**permalink**) 17-06-2008, 08:55 AM

Hi Anurag,

Yes minimum bonus paid is 8.33% of earned ( Basic+DA), over and above 8.33% generally considered as EX-Gratia amount.

If the employee has worked in previous financial year for which bonus is declared , then he / she is eligible to receive the minimum bonus. Company can pay only 8.33% which is minimum due to be paid even if company pays bonus to existing employees at say 18% or 20%.Over and above 8.33% is at the company's discrition whether to pay or not to pay.

Generaly bonus is paid on earned ( Basic +Da), so according to me bonus can not be part of CTC. Performance linked Incentive instead can be part of CTC based on certain criteria ( fulfilling of certain % of target, KRA etc in given year )

Cheers,

Harshad

brijen · #3 (**permalink**) 05-07-2008, 01:21 PM

hi,
Thanks for telling me the the ex-gratia criteria. Can you pls send me the ex-gratia calculation over bonus limit.

bhardwaj_ch1 · #4 (**permalink**) 05-07-2008, 03:18 PM

1. Yes minimum 8.33% and Max.20% as per Bonus act. Calcuation on Basic MaxRs.10,000. Bonus Rs.3500/-payabel as per act.

2. minimum 30 days to be required to work and bonus is payable.Cumpulsary. Can be paid at the time of Diwali.

3. Yes Bonus,Gratuity,LTA/LTC,PF contribution are part of CTC

shubhasen · #5 (**permalink**) 07-07-2008, 04:22 PM

Hi Harshad,

Declaration of bonus depends on what factors?

Regards,

Shubha.

Quote:

Originally Posted by htdesai

Hi Anurag,

Yes minimum bonus paid is 8.33% of earned ( Basic+DA), over and above 8.33% generally considered as EX-Gratia amount.

If the employee has worked in previous financial year for which bonus is declared , then he / she is eligible to receive the minimum bonus. Company can pay only 8.33% which is minimum due to be paid even if company pays bonus to existing employees at say 18% or 20%.Over and above 8.33% is at the company's discrition whether to pay or not to pay.

Generaly bonus is paid on earned ( Basic +Da), so according to me bonus can not be part of CTC. Performance linked Incentive instead can be part of CTC based on certain criteria ( fulfilling of certain % of target, KRA etc in given year )

Cheers,

Harshad

htdesai · #6 (**permalink**) 08-07-2008, 09:20 AM

Hi, Shubha,

Declaration of Bonus and % of bonus depends upon the company. Some comapnies may give flat say 20% bonus, or it can be also be calculated on set on and set off basis of profit earned. there are some defined procedure to be followed for calculation of set on and set off basis and register to be maintained.

Regards,

Harshad

monamalhotra · #7 (**permalink**) 08-07-2008, 09:25 AM

Hi Freinds,

one of freind is facing problem,her Boss is asking her to give resign immediatly otherwise he will terminate her.IS THIS RIGHT/JUSTIFICATION with her,i want to help her.any body help me by Law.

Regards,
Mona

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