Insights on Bonus Calculation, Unpaid Leave Deduction, and Employee Attendance Policies

Hi Agatha,

Can anyone let me know whether unpaid leave is supposed to be deducted from the yearly bonus payout?

Thanks.

Hi there. Thanks for the comments. My company doesn't take into account the leave without pay when calculating bonuses. However, a friend of mine shared with me that her company practices the other way around. Their reason is that by not accounting for the leave without pay, staff may feel demoted.

Dear all,

How to prepare the notice for morning attendance on time? For those employees who are not coming in on time, a notice should be issued.

Thanks/Regards,
Sanjeev Kumar

As per the Payment of Bonus Act, the bonus is paid based on the earnings, which include basic salary and DA. If an employee takes leave (sanctioned and should be in his credit), he has still earned his salary, making him eligible for the bonus. However, if he is marked as absent, he has not earned, and thus the bonus is not payable.

I didn't understand what you mean by "unpaid leave." Please clarify.

The bonus calculations follow the guidelines outlined in the Payment of Bonus Act. For further clarification, feel free to contact me.

Nagaraj
Email: nagaraj1946@gmail.com

Hi, the unpaid leave that you're referring to here is when you're still not entitled to apply for it (since still under probation) and/or unpaid leave taken when all your actual leave entitlement has been fully utilized.

In my previous organization, we were deducting bonus amounts for unpaid leave. There, unpaid leave meant when you had taken excess leave than your entitlement.

The same rule applied to PF deduction as well.

Well, it's taking leave without being paid. Or it's when you have fully utilized your annual leave and the leave without pay to take into action.

Did I manage to get you to understand?

Hi Shefali Saxena,

Thank you for the feedback. I believe in India, there are regulations regarding deducting unpaid leave from the bonus. What are your thoughts on this approach? Do you think it is the best way to handle it?

Cheers.

Whoa... you sound a bit racist. Sorry, but I'm not Nigerian or from Nigeria either.