Bonus and Gratuity are paid as per Payment of Bonus Act and Payment of Gratuity Act respectively. There are organizations who are paying beyond the statutory limit. Say for example other than 20% maximum statutory bonus any organization may decide to pay another 10% as ex-gratia and similar for gratuity instead of 15 days salary for each completed year of service it may be 21 days or 26 days with no upper limit.
Based on capacity to pay as well as organizations policy, it is possible to frame policy for Bonus and Gratuity beyond statutory limit.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
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