Hi everyone, Can bonus be given in monthly salary ?? I need to know this URGENTLY
Because i am observing that most of the company paying bonus in monthly salary.
To my knowledge, if you add a bonus to your monthly salary, it will become part of your salary component. And Esi will be applicable to this.
ANd as per bonus act 1965 bonus will be disbursed upon company profit and sharing basis. After completion of Financial year bonus can be given with in next eight month.
Now, the question arises: If you paid the bonus in advance, which means quarterly, half-yearly, or whatever, then could it be added to the salary????
As per mine knowledge it can not be add in salary if we are disbursing bonus in advance then it will be on separate disbursement sheet not with salary???? please clear me if i am wrong.
Because the bonus is a statutory right of each employee, and esi is not applicable to it, it should be given after the completion of the financial year once the company balance sheet is prepared and profit and loss arise.
if the company is giving a monthly salary, then it is breaking the law???
Because how can they fix the bonus percentage without clearing the current financial year profit and loss.
Please clear this doubt
From India, Chandigarh
Because i am observing that most of the company paying bonus in monthly salary.
To my knowledge, if you add a bonus to your monthly salary, it will become part of your salary component. And Esi will be applicable to this.
ANd as per bonus act 1965 bonus will be disbursed upon company profit and sharing basis. After completion of Financial year bonus can be given with in next eight month.
Now, the question arises: If you paid the bonus in advance, which means quarterly, half-yearly, or whatever, then could it be added to the salary????
As per mine knowledge it can not be add in salary if we are disbursing bonus in advance then it will be on separate disbursement sheet not with salary???? please clear me if i am wrong.
Because the bonus is a statutory right of each employee, and esi is not applicable to it, it should be given after the completion of the financial year once the company balance sheet is prepared and profit and loss arise.
if the company is giving a monthly salary, then it is breaking the law???
Because how can they fix the bonus percentage without clearing the current financial year profit and loss.
Please clear this doubt
From India, Chandigarh
Hi,
Paying Bonus on monthly basis is a wrong process.
Strictly speaking Bonus to be calculated on the basis of the performance and profit of the organisation which cannot be calculated in advance.
If Bonus is paid as part of salary then ESI also to be calculated including Bonus amount ( if the member is within the ESI limit).
From India, Madras
Paying Bonus on monthly basis is a wrong process.
Strictly speaking Bonus to be calculated on the basis of the performance and profit of the organisation which cannot be calculated in advance.
If Bonus is paid as part of salary then ESI also to be calculated including Bonus amount ( if the member is within the ESI limit).
From India, Madras
Hi,
Bonus as part of monthly wages is followed in contract Labour engagement cases. min bonus considered and paid along with salary as it is convenient and reaches contract workmen directly. while calculation annually contractor claims all eligible, while actual payment for left and less worked cases would be difficult to trace. Hence on roll its annual as book closure and contracts are managed through monthly is ideal option followed.
From India, Mysore
Bonus as part of monthly wages is followed in contract Labour engagement cases. min bonus considered and paid along with salary as it is convenient and reaches contract workmen directly. while calculation annually contractor claims all eligible, while actual payment for left and less worked cases would be difficult to trace. Hence on roll its annual as book closure and contracts are managed through monthly is ideal option followed.
From India, Mysore
Most of the company lying in delhi and NCR paying bonus in Monthly salary.
Which is completely wrong. My occupier also raised that strategy in front of me which i replied as wrong. But they are not ready to accept it. They simply wanna add bonus in salary.
But i am not ready and even i have disclosed the act copy in which clearly stated to disbursed the bonus with in eight months after completing the financial year.
However thanks to Laxmi Narayan ji for valuable feedback.
From India, Chandigarh
Which is completely wrong. My occupier also raised that strategy in front of me which i replied as wrong. But they are not ready to accept it. They simply wanna add bonus in salary.
But i am not ready and even i have disclosed the act copy in which clearly stated to disbursed the bonus with in eight months after completing the financial year.
However thanks to Laxmi Narayan ji for valuable feedback.
From India, Chandigarh
Indeed, depending on how it is set up, a bonus may be included in the monthly wage. The bonus becomes a part of the compensation package if it is paid as a regular, set part of the wage. If the entire salary is within the applicable ESI wage limit, it is subject to statutory deductions such as ESI (Employees' State Insurance).
However, a bonus is typically not regarded as a part of the compensation structure if it is paid out as an annual incentive or performance bonus, for example. This kind of incentive might not be eligible for ESI contributions because regular earnings are normally the only ones included for ESI reasons. To properly organise bonuses, it's crucial to refer to legal and compliance rules.
From India, Kolkata
However, a bonus is typically not regarded as a part of the compensation structure if it is paid out as an annual incentive or performance bonus, for example. This kind of incentive might not be eligible for ESI contributions because regular earnings are normally the only ones included for ESI reasons. To properly organise bonuses, it's crucial to refer to legal and compliance rules.
From India, Kolkata
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