I had joined a new company in Feb 2017. In the offer letter, they stated a bonus equal to your basic salary, approximately 20k, would be given to you. However, they are now telling me a different story. They claim that since I joined in the financial year 2016-17, they will only give me 5k now, and the remaining 15k will be given next year. I am confused about this situation.
Is what they are saying correct? Am I eligible to claim my full bonus?
With Regards,
Himanshu Sharma
From India, Delhi
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Is what they are saying correct? Am I eligible to claim my full bonus?
With Regards,
Himanshu Sharma
From India, Delhi
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The bonus mentioned in the offer letter is not in absolute terms but only an approximate amount. Whether it is a statutory bonus or otherwise, its computation and payment are based on the period of any stretch of consecutive 12 months depending upon the Accounting Year adopted by the organization.
Accounting Year and Bonus Eligibility
Your post indicates that the Accounting Year adopted is the Financial Year comprising the 12-month period commencing from April 1 and ending with March 31 every year respectively. Admittedly, you've joined in February 2017. When the accounts of the Company are balanced for the financial year 2016-17, you will get your bonus proportionately for the period of your service in the FY, i.e., for the months of February and March 2017 only. Therefore, what your Management says is correct insofar as your eligibility for the bonus for 2016-17 is concerned.
Determining the Bonus Amount
Regarding the amount of bonus you are entitled to for the period, it depends on the fact mentioned, whether the statutory bonus or otherwise, and the componential structure of your salary as well.
From India, Salem
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6108Accounting Year and Bonus Eligibility
Your post indicates that the Accounting Year adopted is the Financial Year comprising the 12-month period commencing from April 1 and ending with March 31 every year respectively. Admittedly, you've joined in February 2017. When the accounts of the Company are balanced for the financial year 2016-17, you will get your bonus proportionately for the period of your service in the FY, i.e., for the months of February and March 2017 only. Therefore, what your Management says is correct insofar as your eligibility for the bonus for 2016-17 is concerned.
Determining the Bonus Amount
Regarding the amount of bonus you are entitled to for the period, it depends on the fact mentioned, whether the statutory bonus or otherwise, and the componential structure of your salary as well.
From India, Salem
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Dear Himanshu,
Your company paid the bonus as per actual. You are only eligible to get bonuses for the period February and March 2017 as you joined the company in February 2017. Your offer letter states the bonus for the complete period, i.e., April 2016 to March 2017. You should not feel that injustice was done to you since you do not have information about the bonus. I hope the above clarification clears your doubts.
Regards
From India, Mumbai
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Your company paid the bonus as per actual. You are only eligible to get bonuses for the period February and March 2017 as you joined the company in February 2017. Your offer letter states the bonus for the complete period, i.e., April 2016 to March 2017. You should not feel that injustice was done to you since you do not have information about the bonus. I hope the above clarification clears your doubts.
Regards
From India, Mumbai
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