Dear Seniors Can bonus be given in monthly salary ?? Need to know this URGENTLY. Regards Anuradha
From India, Pune
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22From India, Pune
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Hi,
Bonus is turnover profit that a company shares with its employees. This can be shared as a "festival bonus" or Annual Bonus, whose percentage is fixed, minimum being 8.33% or Rs 2800 (as per Bonus Act). For CTC sake, the minimum annual bonus can be broken up and shown as a monthly component if it is a fixed one.
But I guess you are confusing it with Monthly Incentive, which is purely target-based and performance-driven. This cannot be clubbed with the salary component as it is a variable concept altogether.
Hope this is clear!
Regards,
VJ:-P
From India, New Delhi
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Bonus is turnover profit that a company shares with its employees. This can be shared as a "festival bonus" or Annual Bonus, whose percentage is fixed, minimum being 8.33% or Rs 2800 (as per Bonus Act). For CTC sake, the minimum annual bonus can be broken up and shown as a monthly component if it is a fixed one.
But I guess you are confusing it with Monthly Incentive, which is purely target-based and performance-driven. This cannot be clubbed with the salary component as it is a variable concept altogether.
Hope this is clear!
Regards,
VJ:-P
From India, New Delhi
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Dear Anuradha, Bonus can be shown in CTC. I have also consulted with the law experts. Don’t worry go ahead Gopi.K
From India, Chandigarh
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From India, Chandigarh
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Hi All,
Bonuses can be included as part of the monthly salary, but there are limitations. Employees who have a bonus of Rs.10,000 or less can receive it as a salary component.
If you need more clarity, please respond.
Regards,
Ramesh
From India
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Bonuses can be included as part of the monthly salary, but there are limitations. Employees who have a bonus of Rs.10,000 or less can receive it as a salary component.
If you need more clarity, please respond.
Regards,
Ramesh
From India
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Dear Anuradha,
You can show the bonus as a bonus, not as a festive allowance. Some companies pay bonuses to their employees on a monthly basis. Simply calculate it based on Basic DA x 8.33% for manufacturing companies. With the advent of the service sector and contract employment, it is beneficial legislation to ensure the payment of a minimum bonus of 8.33%.
Check whether the bonus is paid monthly or yearly, as it makes a difference in whether the employee receives the bonus or not. Go ahead and implement it. All the best.
Regards
From India, Delhi
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You can show the bonus as a bonus, not as a festive allowance. Some companies pay bonuses to their employees on a monthly basis. Simply calculate it based on Basic DA x 8.33% for manufacturing companies. With the advent of the service sector and contract employment, it is beneficial legislation to ensure the payment of a minimum bonus of 8.33%.
Check whether the bonus is paid monthly or yearly, as it makes a difference in whether the employee receives the bonus or not. Go ahead and implement it. All the best.
Regards
From India, Delhi
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Yes, It is implemented in D.A.E., In the name of PRIS performance related incentive scheme
From India, Coimbatore
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From India, Coimbatore
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I do not think Bonus can be paid on a monthly basis. For eg I join a company in July 2010. I cannot be paid Bonus as part of monthly salary as I have not worked in the previous financial year.
From India, Calcutta
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From India, Calcutta
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