Hi
I went thru all posts and interestring articles.
I want to give some clarifications here.
1. There are two issues we handle in employment A. Contract with the employee
B. Statutory Benefits.
2. CTC falls under the term of individual contract.. Here, we commit to pay the individual a sum agreed as CTC including all benefits which includes statuory benefits.
3. Whether we indicate or not, we need to pay the statutory benefits as provided.
Let us examine the case of Bonus.
Generally Bonus is an annual amount payable to an employee.
This is guided by The Payment of Bonus Act
Whether we committ or not, this amount is paybale for these employees as per the Act.
Other who are not falling under this definition, will be guided by the individual contract. We generally say that Performance Bonus based on the performance will be paid every year. No committment of percentage is given here. It normally specifies maximum
during negotiations, indications are given that an employee might get 10 % to 50%( example) In this case minimum of 10% shall be paid If an organidation does not pay higher, it can not be construed as unethical.
Siva
I went thru all posts and interestring articles.
I want to give some clarifications here.
1. There are two issues we handle in employment A. Contract with the employee
B. Statutory Benefits.
2. CTC falls under the term of individual contract.. Here, we commit to pay the individual a sum agreed as CTC including all benefits which includes statuory benefits.
3. Whether we indicate or not, we need to pay the statutory benefits as provided.
Let us examine the case of Bonus.
Generally Bonus is an annual amount payable to an employee.
This is guided by The Payment of Bonus Act
Whether we committ or not, this amount is paybale for these employees as per the Act.
Other who are not falling under this definition, will be guided by the individual contract. We generally say that Performance Bonus based on the performance will be paid every year. No committment of percentage is given here. It normally specifies maximum
during negotiations, indications are given that an employee might get 10 % to 50%( example) In this case minimum of 10% shall be paid If an organidation does not pay higher, it can not be construed as unethical.
Siva