Dear all,
The statutory percentage of bonus starts at 8.33% and the maximum is 20%.
My questions are:
1. If my company wishes to give a bonus of more than 20%, what is the legal position with respect to IT?
2. Can the company fix slabs of bonuses for different ranges of basic pay? For example:
- All employees getting below 5000 basic - 20,000/- as bonus
- From 5001-10,000 - 30,000/- as bonus
- Above 10,000 - 35,000/- as bonus
If the employees have no objection to this, can the company implement this? What is the legal position?
3. If the salary structure is the prerogative of the company, it can fix the 10,000/- salary with a basic of 1000/-, which affects PF outgo. This is of particular importance as some employees getting lower salaries are showing resistance to PF & ESI.
4. Are bonus, production bonus, rewards, etc. also added for the calculation of PF & ESI?
As the cost of living has increased, the employees at the lower salary slabs are the ones who are most affected. I am only trying to figure out ways to reduce the outgo for the company and employees while ensuring that the employees receive the same or more salary in their pocket (as the company benefits from the savings in the employer's share, it can pass on some part of it).
But how does the law look at this?
Hope to receive a reply.
Thank you.
The statutory percentage of bonus starts at 8.33% and the maximum is 20%.
My questions are:
1. If my company wishes to give a bonus of more than 20%, what is the legal position with respect to IT?
2. Can the company fix slabs of bonuses for different ranges of basic pay? For example:
- All employees getting below 5000 basic - 20,000/- as bonus
- From 5001-10,000 - 30,000/- as bonus
- Above 10,000 - 35,000/- as bonus
If the employees have no objection to this, can the company implement this? What is the legal position?
3. If the salary structure is the prerogative of the company, it can fix the 10,000/- salary with a basic of 1000/-, which affects PF outgo. This is of particular importance as some employees getting lower salaries are showing resistance to PF & ESI.
4. Are bonus, production bonus, rewards, etc. also added for the calculation of PF & ESI?
As the cost of living has increased, the employees at the lower salary slabs are the ones who are most affected. I am only trying to figure out ways to reduce the outgo for the company and employees while ensuring that the employees receive the same or more salary in their pocket (as the company benefits from the savings in the employer's share, it can pass on some part of it).
But how does the law look at this?
Hope to receive a reply.
Thank you.