Dear All,
As per law bonus is payable to whom having (basic +DA)salary upto 10,000 monthly.
The employee is in executive (assistant Mgr) category and the the bonus indicated in his appointment letter was part of CTC (not a statutory bonus). However, no performance/profit based condition is bear with his appointment letter. In this case if the company is not paying the bonus , can he take go with judicial way ?
PLZ GIVE UR VALUABLE RESPONSE
REGARDS
mAMTA AGRAWAL
From India, Mumbai
2As per law bonus is payable to whom having (basic +DA)salary upto 10,000 monthly.
The employee is in executive (assistant Mgr) category and the the bonus indicated in his appointment letter was part of CTC (not a statutory bonus). However, no performance/profit based condition is bear with his appointment letter. In this case if the company is not paying the bonus , can he take go with judicial way ?
PLZ GIVE UR VALUABLE RESPONSE
REGARDS
mAMTA AGRAWAL
From India, Mumbai
Dear Ms. Mamta Agarwal,
Bonus is not a part of CTC. However, many companies have their CTC breakup included with Bonus [The Bonus if paid with monthly salary and can be adjusted at the end of the accounting year, it should be suitably maintained with the records accordingly with forms A, B, C & D.]
However, according to The Bonus Act 1965, Bonus is payable annually within 8 months from close of accounting year to all employees whose salary or wages do not exceed Rs 10000 per month provided they have worked for at least 30 days in the accounting year -- which means Bonus is paid for the previous year. In my view the Bonus should be paid in which the available surplus,& the allocable surplus and therefore the percentage of bonus can be determined.
If your company had decided to include bonus as a part of the CTC for salary fixation, they can include the prescribed profit which has to be declared for previous financial year even if the company is running in losses, it has to pay minimum bonus (8.33%) to employees and it can be adjusted in add - on / add - off for next year's profit.
Read The Bonus Act U/s 17. Adjustment of customary or interim bonus against bonus payable under the Act.—Whether in any accounting year –
(b) an employer has paid a part of the bonus payable under this Act to an employee before the date on which such bonus becomes payable.
The Bonus can be paid with monthly salary and can be adjusted at the end of the accounting year and the requirement of maintaining registers and returns in form A, B, C & D can be maintained accordingly.
From India, Visakhapatnam
Bonus is not a part of CTC. However, many companies have their CTC breakup included with Bonus [The Bonus if paid with monthly salary and can be adjusted at the end of the accounting year, it should be suitably maintained with the records accordingly with forms A, B, C & D.]
However, according to The Bonus Act 1965, Bonus is payable annually within 8 months from close of accounting year to all employees whose salary or wages do not exceed Rs 10000 per month provided they have worked for at least 30 days in the accounting year -- which means Bonus is paid for the previous year. In my view the Bonus should be paid in which the available surplus,& the allocable surplus and therefore the percentage of bonus can be determined.
If your company had decided to include bonus as a part of the CTC for salary fixation, they can include the prescribed profit which has to be declared for previous financial year even if the company is running in losses, it has to pay minimum bonus (8.33%) to employees and it can be adjusted in add - on / add - off for next year's profit.
Read The Bonus Act U/s 17. Adjustment of customary or interim bonus against bonus payable under the Act.—Whether in any accounting year –
(b) an employer has paid a part of the bonus payable under this Act to an employee before the date on which such bonus becomes payable.
The Bonus can be paid with monthly salary and can be adjusted at the end of the accounting year and the requirement of maintaining registers and returns in form A, B, C & D can be maintained accordingly.
From India, Visakhapatnam
Dear Mamta ji, The answer to your question is as under: The employee has a right to recourse against the employer for breach of contract.
From India, Mumbai
From India, Mumbai
Hello Mamta
As the bonus does not fall under the Bonus Act and it ismentioned under CTC without any conditions and CTC is a matte rof contract, you can go by what Mr.keshav Korgaonkar said.
B.Saikumar
Mumbai
From India, Mumbai
As the bonus does not fall under the Bonus Act and it ismentioned under CTC without any conditions and CTC is a matte rof contract, you can go by what Mr.keshav Korgaonkar said.
B.Saikumar
Mumbai
From India, Mumbai
Dear Mamta, The employee can claim bonus as per the validity of the appointment letter, but not under statutory means that is under Payment of Bonus Act.
From India, Chennai
From India, Chennai
Dear Ms.Mamta Agrawal,
As per the definition of the term 'employee' in S2(13) of the Payment of Bonus Act,1965 irrespective of the nature of one's work, a person would be an employee as long as his salary or wage does not exceed Rs10,000/-p.m.Since u have mentioned only the individual's designation which has no relevance now and not his monthly salary.my answer to ur query as below is based on assumption only:
(a) Subtracting the 'bonus' mentioned in his C.T.C, if his monthly salary is Rs10,000/- or below, he is entitled to bonus as the P.B Act,1965.
(b) Otherwise, not.
In case of refusal, the remedy is only as suggested by Mr.Korgaonkar
From India, Salem
As per the definition of the term 'employee' in S2(13) of the Payment of Bonus Act,1965 irrespective of the nature of one's work, a person would be an employee as long as his salary or wage does not exceed Rs10,000/-p.m.Since u have mentioned only the individual's designation which has no relevance now and not his monthly salary.my answer to ur query as below is based on assumption only:
(a) Subtracting the 'bonus' mentioned in his C.T.C, if his monthly salary is Rs10,000/- or below, he is entitled to bonus as the P.B Act,1965.
(b) Otherwise, not.
In case of refusal, the remedy is only as suggested by Mr.Korgaonkar
From India, Salem
Dear Umakanthan ji,
I have not given the first option to queriest which you gave since the subject title of the thread is Bonus Act for more than 10000/- pm. Also I have given the answer to the point in short purposely. In this forum, what I feel, one should response to the point in short unless it is required. One should not repeat earlier response which is right in answer, in his own way unless there is any value addition.
I have just taken an opportuity to express my feeling.
From India, Mumbai
I have not given the first option to queriest which you gave since the subject title of the thread is Bonus Act for more than 10000/- pm. Also I have given the answer to the point in short purposely. In this forum, what I feel, one should response to the point in short unless it is required. One should not repeat earlier response which is right in answer, in his own way unless there is any value addition.
I have just taken an opportuity to express my feeling.
From India, Mumbai
HI ALL,
VERY MUCH THANKS ALL FOR YOUR RESPONSES.
QUES 1 ... CAN AN EMPLOYEE CLAIM BONUS AS PER APPOINTMENT LETTER AT THE TIME OF FULL & FINAL SETTLEMENT , IF COMPANY IS IN LOSS , HOW CAN COMPANY PAY BONUS ??
QUES 2 ..... IF COMPANY IS DECIDED TO PAY BONUS 70 % OF HIS EMPLOYEES AS IT IS STATUARY BONUS,AND NOT TO PAY 30% EMPLOYEES AS THEIR BASIC SALARY IS MORE THAN10,000 BASIC ...WHETHER IS IT FAIR....??
@govindsinghnegi.... ASST MANAGER SALARY 1,40,000 MONTHLY GROSS SALARY
BONUS WE HAVE MENTIONED IS 8.33% AS AP ART OF CTC.
From India, Mumbai
VERY MUCH THANKS ALL FOR YOUR RESPONSES.
QUES 1 ... CAN AN EMPLOYEE CLAIM BONUS AS PER APPOINTMENT LETTER AT THE TIME OF FULL & FINAL SETTLEMENT , IF COMPANY IS IN LOSS , HOW CAN COMPANY PAY BONUS ??
QUES 2 ..... IF COMPANY IS DECIDED TO PAY BONUS 70 % OF HIS EMPLOYEES AS IT IS STATUARY BONUS,AND NOT TO PAY 30% EMPLOYEES AS THEIR BASIC SALARY IS MORE THAN10,000 BASIC ...WHETHER IS IT FAIR....??
@govindsinghnegi.... ASST MANAGER SALARY 1,40,000 MONTHLY GROSS SALARY
BONUS WE HAVE MENTIONED IS 8.33% AS AP ART OF CTC.
From India, Mumbai
Dear Mamta ji
Answer to your two query-
Minimum Bonus @8.33% to be paid to the employees covered under the Bonus Act, even if the company is in loss and not exempted by any provisions of the Act.
Since the Act allow to pay amount only to those employees who are drawing salary up to 10,000/- and above this is made optional. As such it cannot be said to be unfair as per law.
pkjain
From India, Delhi
Answer to your two query-
Minimum Bonus @8.33% to be paid to the employees covered under the Bonus Act, even if the company is in loss and not exempted by any provisions of the Act.
Since the Act allow to pay amount only to those employees who are drawing salary up to 10,000/- and above this is made optional. As such it cannot be said to be unfair as per law.
pkjain
From India, Delhi
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