Dear Seniors, Why Bonus is not part of Gross? I have seen salary slip in which bonus is mentioned and will ESIC get deducted on Bonus? Regards, Robins Christian
From India, Mumbai
Acknowledge(0)
Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Gross salary is the total wages earned by an employee. Bonus payment under the Payment of Bonus Act 1965 is the statutory obligation of the employer and has nothing to do with the wages earned by the employee.
What you have seen in salary slips may not be a bonus under the Payment of Bonus Act 1965 but other types of bonuses like performance bonuses, etc., which employees receive as per their employment contract.
From India, Pune
Acknowledge(0)Amend(0)
177What you have seen in salary slips may not be a bonus under the Payment of Bonus Act 1965 but other types of bonuses like performance bonuses, etc., which employees receive as per their employment contract.
From India, Pune
Acknowledge(0)Amend(0)
What you said, I understood, but I still have some confusion:
1. Can the employer show "BONUS" as part of the monthly gross in the salary slip?
2. Will ESIC be deducted on the bonus?
Regards,
Robins Christian
From India, Mumbai
Acknowledge(0)Amend(0)
1. Can the employer show "BONUS" as part of the monthly gross in the salary slip?
2. Will ESIC be deducted on the bonus?
Regards,
Robins Christian
From India, Mumbai
Acknowledge(0)Amend(0)
I agree with Sinha, sir. Bonus is not a part of the gross salary, but a performance bonus is a part of the employment contract. Still, ESIC is not calculated on any type of bonus, as per my knowledge.
Regards,
Chitra
From India, Pune
Acknowledge(0)Amend(0)
Regards,
Chitra
From India, Pune
Acknowledge(0)Amend(0)
Applicability of ESI on Salary Components
ESI will be applicable to any component appearing on the salary slip continuously for more than two months. If the company is also paying a statutory bonus continuously on a monthly basis, which is very rare and a challenging task, then ESI will be applicable to that.
Regards,
Kamal
From India, Pune
Acknowledge(0)Amend(0)
ESI will be applicable to any component appearing on the salary slip continuously for more than two months. If the company is also paying a statutory bonus continuously on a monthly basis, which is very rare and a challenging task, then ESI will be applicable to that.
Regards,
Kamal
From India, Pune
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc