Remain with the same salary and change the CTC breakup and add the Bonus part in that? - CiteHR
Manojkamble
Sr. Hr Executive
Bharat Gera
Principal Hr Consultant
Pan Singh Dangwal
Joint Manager

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In my company till date bonus was not been given but now we are planning to give bonus to employees. Can we remain with the same salary and change the CTC breakup and add the Bonus part in that ? Can we show the bonus part in the salary breakup? Or can we just add a line with * mark for bonus that it will be paid according to the company norms. ?
Please suggest me what should I do?

Yes, you may choose any option as to alter your CTC breakup and add on it as a part or show with * mark and put a comment of payment of bonus as per statutory norms.
Dear Member,
Showing Bonus in the CTC keeping the gross salary with no change (hike) will definitely lead to disputes and will be opposed by many. However, legally you can do that. But here the most important and challanging task is that how you handle the employees. There can be some situations:-
1. The main challenge is Bonus will be paid once in a year. In such case the monthly net salary will be decreased. As you know nobody will accept to reduce the net salary (in hand).
2. In other scenario, if you donít want to reduce net salary, you can show and pay Bonus on monthly basis. But in this case Bonus will attrat ESI contributions.
3. In case of lower pay scale employees, while shifting the normal wages into Bonus, pls make sure the wages should not go lower than the Minimum Wages as specified in the Act. I am advising because you are Delhi base and the MW in Delhi is high as compared to other states. Even if the wages is equal to the Minimum Wages, still take care of the minimum net salary required by the lower scale employees, so that they can afford the minimum living standard.
Hope I am cleared to your point, learned members can put more light on the matter.

Dear Friend,
You can do anything without affecting monthly gross salary & monthly net salary of an employee.
Warm Regards
Bharat Gera
HR Consultant

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