Dear all, I am working in an advertising company that is a newly established startup. We have to create the salary breakup for the new employees. I have a question to ask you: if we show the bonus in their breakup, are they entitled to receive the bonus this year as bonuses are usually paid for the previous year's work?
Please guide me; I am a fresher in HR and I need your support.
Thanks,
Poja
From India, Delhi
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1Please guide me; I am a fresher in HR and I need your support.
Thanks,
Poja
From India, Delhi
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Poja, You can show the min. bonus of 8.3% as the rate of bonus is susceptible to change as per the financial standings of your company. Pon
From India, Lucknow
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From India, Lucknow
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Statutory Bonus as per bonus Act is always paid for the last year ended on 31 March. and will be paid upto 8 month after completion of Financial year.......
From India, Surat
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From India, Surat
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I think you are talking about the statutory bonus under the Payment of Bonus Act.
Statutory Bonus and Gross Salary
The statutory bonus should not be a component of the gross salary; it is a statutory obligation of the employer to pay a bonus calculated on the profit/loss of the company, apart from the fixed monthly wages to employees, if applicable.
Regards,
Kamal
From India, Pune
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Statutory Bonus and Gross Salary
The statutory bonus should not be a component of the gross salary; it is a statutory obligation of the employer to pay a bonus calculated on the profit/loss of the company, apart from the fixed monthly wages to employees, if applicable.
Regards,
Kamal
From India, Pune
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Gratuity is also a statutory benefit. Employer contribution to PF is also a statutory benefit. However, many companies are including those components in the CTC to inflate it. In a CTC regime, all payouts are included.
Regards,
Pon
From India, Lucknow
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Regards,
Pon
From India, Lucknow
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Hi @PON, I mentioned gross wages and not CTC. If I'm not mistaken, Poja is referring to gross salary and not CTC. Employer contributions to gratuity, PF, and ESI can be included in the annual CTC. Bonus can also be included in CTC but not in monthly gross salary.
Thank you.
From India, Pune
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Thank you.
From India, Pune
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Dear Kamal we are putting bonus as a part of CTC bt my thread is that if I m appointing an employee this year so at the time of diwali n others so Can he will be entitle to get bonus this year.
From India, Delhi
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From India, Delhi
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In Oct 2011 you will pay bonus for the financial year April 2010 - March 2011. So anyone appointed after 31st March 2011 will not get bonus.
From India, Pune
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From India, Pune
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The statutory bonus at 8.33% (minimum) is paid only for the previous financial year if the employee has worked for at least 30 days in that year. If you are paying a bonus in November 2011, it will relate to the period from April 2010 to March 2011. If the employee is not working until March 31, 2011, there is no question of a bonus payment. He will receive the bonus only in November 2012 or October 2012 (Diwali time). You can show the bonus in the CTC of an employee, and to be on the safer side, you can add a note in his letter stating, "Payment of bonus shall be subject to the provisions of the Payment of Bonus Act 1965." This sentence will address all your concerns.
Please let me know if you need any further assistance.
Thank you.
From India, Mumbai
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Please let me know if you need any further assistance.
Thank you.
From India, Mumbai
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf