Dear Seniors, Please help me out. If an employee has a basic salary above ₹10,000, can we give them a bonus? And if we provide them with ex-gratia, is ex-gratia mandatory, or can we avoid it?
Thanks,
Amit Sharma
From India, Delhi
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1Thanks,
Amit Sharma
From India, Delhi
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If any employee's basic salary is above ₹10,000, then no employer is liable to pay a bonus. Even employees can't file any legal dispute case against the company either. Generally, to motivate employees and create a better industrial environment, companies pay them in the ex-gratia term. However, statutorily, no employer is bound to give a bonus above a basic ₹10,000.
For any further queries, you can discuss.
Regards,
Ratikanta Rath
From India, Durgapur
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For any further queries, you can discuss.
Regards,
Ratikanta Rath
From India, Durgapur
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Yes, you can give a bonus, though the basic salary is greater than ₹10,000, and ex-gratia is not mandatory. It is purely at the discretion of the management to pay ex-gratia. Normally, when an amount is paid to employees who are not covered under the Payment of Bonus Act and when some amount is given in excess of the ceiling prescribed under the Act (bonus earnings restricted to ₹3,500 per month), it will be termed as ex-gratia in the bilateral/tripartite settlements.
Normally, ex-gratia is the amount paid to employees in recognition of their cooperation and contribution. The employees have no right to demand ex-gratia unless it is contemplated in a settlement between the employer and employee.
From India, Mumbai
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Normally, ex-gratia is the amount paid to employees in recognition of their cooperation and contribution. The employees have no right to demand ex-gratia unless it is contemplated in a settlement between the employer and employee.
From India, Mumbai
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Even when paying the ex-gratia, you should be very careful. Bonus is a statutory obligation; hence, whether your company is running with profits or losses, you should pay a minimum bonus, but not in the case of ex-gratia. Unfortunately, there is a critical word in English - "practice" - that plays a vital role. Therefore, when you are paying the ex-gratia, you should take an undertaking from each employee that they should not quote this as a precedent and demand the same next year.
If the company is profitable, they will pay the ex-gratia, but unlike the bonus, there is no obligation for ex-gratia.
Regards,
Kamesh
From India, Hyderabad
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If the company is profitable, they will pay the ex-gratia, but unlike the bonus, there is no obligation for ex-gratia.
Regards,
Kamesh
From India, Hyderabad
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Dear Seniors, myself Subhajit, Assistant Manager HR in our company. Please help me out. Recently, we paid a bonus to an employee whose basic salary is ₹10,000 per month. We gave him a bonus of ₹10,000 and did not pay ex gratia. Is this right or wrong?
Thanks,
Subhajit Bhowmick
From India, Calcutta
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Thanks,
Subhajit Bhowmick
From India, Calcutta
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Dear Subhajit, If for 1 month then As Per Bonus act in C register u have to show Rs./-3500 for statutory Purpose and rest amount 6500 show in ex-Gratia head. Ratikanta Rath
From India, Durgapur
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From India, Durgapur
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Statutory liablity for payment of bonus is rs. 10000/- (basic+da) exgartia payment is sole liablity of employer. sumit
From India, Ghaziabad
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From India, Ghaziabad
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I am Sundar. I have worked for a public limited company for the past 2.5 years, and recently, I resigned from my job in April 2011. I asked HR for the bonus for the financial year 2010-11. The HR person informed me that resigned employees are not eligible for the bonus, even though I worked for the previous financial year 2010-11. My basic salary is Rs. 4000/-, and my gross salary is Rs. 13500/-.
So, I kindly request anyone to help me with how I can claim my bonus.
Thank you.
Regards
From India, Madras
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So, I kindly request anyone to help me with how I can claim my bonus.
Thank you.
Regards
From India, Madras
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Subject - Re: Bonus Dear Seniors Myself Servjeet, Accounts Manager in our companies. Please help me out. pls provide me sample of bonus regiter form c 4(b) Thanks, servjeet
From India, Delhi
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From India, Delhi
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Is Exgratia is mandatory to pay whether the employee resigns on his own???
From India, Srikakulam
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From India, Srikakulam
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Dear Sir/Madam,
If an employer is paying ex gratia in lieu of a bonus to existing employees in a particular grade, is it compulsory to disburse the same to former employees for the period they were employed with the company.
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If an employer is paying ex gratia in lieu of a bonus to existing employees in a particular grade, is it compulsory to disburse the same to former employees for the period they were employed with the company.
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(Fact Checked)-[B]Response[/B]: Ex-gratia is discretionary, not mandatory, for both current and ex-employees. It's not compulsory to give ex-gratia to ex-employees. (1 Acknowledge point)
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Dear Anil,
If the concerned employee who left falls under the Bonus coverage limit (i.e., salary less than or equal to Rs 21,000) and the Bonus accounting Period, then the departed employee is also eligible for a bonus. If the amount is above 21,000/-, it will be considered as Exgratia, and in this case, any (existing or departed employee) does not have a legal right to claim it. It purely depends on the management's decision whether to pay or not.
T/R Ratikanta Rath
From India, Durgapur
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If the concerned employee who left falls under the Bonus coverage limit (i.e., salary less than or equal to Rs 21,000) and the Bonus accounting Period, then the departed employee is also eligible for a bonus. If the amount is above 21,000/-, it will be considered as Exgratia, and in this case, any (existing or departed employee) does not have a legal right to claim it. It purely depends on the management's decision whether to pay or not.
T/R Ratikanta Rath
From India, Durgapur
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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
CiteHR.AI
(Fact Checked)-The payment of ex-gratia is not mandatory upon an employee resigning. Ex-gratia is typically a voluntary payment made by the employer. (1 Acknowledge point)