R.N.Khola
Labour Laws & Ir
Bhimsen_panchal
Hr Profile
+3 Others

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I wanted to know if any employee is basic + DA is 12000K per month what amount should we consider for bonus and gratuity
From India, Kolhapur
Dear Member,
He is not entitled to receive bonus under the Payment of Bonus Act, 1965 & as far as the gratuity payment calculation is concerned this amount of basic & DA shown by you is to be considered.
[SIZE=1]R.N.KHOLA
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From India, Delhi
I belong to the Marketing company, deals in real eastate industry. Managment has given me the responcibility of desinging a salary structure. Can you please guide me for the same, we are small company about 20 people. its a partnership firm.
Regards,
Mugdha.

From India, Pune
pls take help from enclosed file. if req modify the value as per your requirment.
From India, Gurgaon
Dear Sachin Aute
I agree with the statement made by Mr. Khola as in accordance with the provision of Bonus act one who is getting salary more than Rs. 10000/- is not entitled for Bonus.
Secondly he is eligible for gratuity on the basis of his basic + D.A. when he complete the continuous service of 5 years in the same organization,
Regards,
KIRAN KALE

From India, Kolhapur
i have just completed 5 yrs with my company my questtion is Can a company deduct gratuity from monthly as the pf is deducted? i have just received a letter where it show alongwith my pf deduction there will also be a gratuity deduction, pls let me know if this correct procedure, as employees who have been with the company for the lat 7-8 yrs have never had any gratuity deducted .
Regards,
Lucille

From India, Mumbai
DEAR,
AS PER BONUS AND PAYMENT ACT 1965, HE IS ELIGIBLE FOR 8.33% OF HIS BASIC SALARY AS A BONUS AND gratuity eligibility is 4.15%.but is caculat on the basis of duration of services year.its minimum requirement of services is 5 year or 240 present day each year up to 5 year.
Thanx

From India, Surat
Dear Lucille,
Gratuity is a liability of an employer as an employee concern has completed his service of 5 years and on his or her exit from the services gratuity should be paid to him or her. So, question doesn't arise to deduct it from salary of employee; if so it is bad in law and contrary to the provisions.
One probability is there if u and management agree for the annual payment fixes on package basis, it may include gratuity in the CTC. It may please be checked. If there is no any such a agreement then u can protest the same. no u should protest the same to avoid further mis consequences in future.
Reagards,
KIRAN KALE

From India, Kolhapur
Dear Lucille,
The observation made by Kiran Kale is correct. May be as he has rightly pointed out, it has been shown as part of CTC and may not be a deduction. The gratuity contribution of the employer will generally be shown alongwith the PF contribution from the employer side. As the PF contribution is equivalent to the employee contribution you would have assumed that gratuity will also be deducted.
Can you please update the status.
M.V.KANNAN

From India, Madras
Dear Lucille,
There is no such provision for deduction of salary on account of gratuity, Gratuity is paid to the employee after completion of 5 years in the organisation for his good behavior in the organisation, Employee is eligible for gratuity after completion of 5 years only, If the employer is deducting some amount from the salary on account of gratuity, if any employee left the organisation before completion of 5 years then how he will pay to the employee.
Employer is not eligible to deduct from the salary any amount on account of gratuity.

From India, New Delhi
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