Would you mind if I could get some information/clarifications about bonuses? If you would not mind, could you please advise me?
You see, we have appointed 3 marketing executives along with one programmer. One of the marketing executives was appointed in October 2006 with a total gross salary of Rs. 35,000 per month. The second marketing executive was appointed in April 2007 with a gross salary of Rs. 40,000 per month. The third marketing executive joined the company in August 2007 with a gross salary of Rs. 40,000 per month. The programmer was appointed in May 2007 with a gross salary of Rs. 30,000 per month.
The issue is that all four employees have asked for a Diwali bonus. Also, in our organization, the bonus for other staff is calculated as per the financial year from April to March.
I would like to ask you:
1. Are all four candidates eligible for a bonus?
2. Since their salary is about Rs. 10,000, are they right to claim a bonus because they say they used to get a bonus in their earlier company where they worked?
3. If the management wants to give them a bonus, how would the bonus be calculated (meaning which months should be counted for giving the bonus since in our company it is from April to March)?
4. Could you please tell me from which month we should calculate the bonus for each of the above employees?
Please advise.
Best regards
From India, Mumbai
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You see, we have appointed 3 marketing executives along with one programmer. One of the marketing executives was appointed in October 2006 with a total gross salary of Rs. 35,000 per month. The second marketing executive was appointed in April 2007 with a gross salary of Rs. 40,000 per month. The third marketing executive joined the company in August 2007 with a gross salary of Rs. 40,000 per month. The programmer was appointed in May 2007 with a gross salary of Rs. 30,000 per month.
The issue is that all four employees have asked for a Diwali bonus. Also, in our organization, the bonus for other staff is calculated as per the financial year from April to March.
I would like to ask you:
1. Are all four candidates eligible for a bonus?
2. Since their salary is about Rs. 10,000, are they right to claim a bonus because they say they used to get a bonus in their earlier company where they worked?
3. If the management wants to give them a bonus, how would the bonus be calculated (meaning which months should be counted for giving the bonus since in our company it is from April to March)?
4. Could you please tell me from which month we should calculate the bonus for each of the above employees?
Please advise.
Best regards
From India, Mumbai
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Dear Mr. Alex
I have given below answers for your questions. Hope that those will help you.
1. Are all the four candidates eligible for bonus?
As per the act, a person who is drawing up to Rs.3500/- as wage (Basic + DA) PM, is eligible to get bonus. Using this point you can get to know who is eligible, for bonus, among your above mentioned staff. But almost in all companies employees are being paid bonus irrespective of their wage. If that be the case also, only the first person, who joined in Oct 06, is eligible to get bonus for the FN 2006 – 07.
2. Since their salary is about 10,000 are they right to claim bonus coz they say they used to get bonus in their earlier company where they worked.
Legally they don't have the right to ask for bonus. It's up to the company. But almost in all companies employees are being paid bonus irrespective of their wage.
3. if the management wants to give them bonus how would the bonus be calculated (meaning what which month should counted for giving the bonus coz in our company it is from April to March)
Everywhere it is from April to March only. You mentioned that you calculated for other staff. Like that you can calculate for the eligible person also.
4. Can you pl tell me from which month should we calculate the bonus for each of the above employee?
Since the first person only is eligible, for him only you can calculate (from Oct 06 to March 07).
Regards
M. Helen
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2I have given below answers for your questions. Hope that those will help you.
1. Are all the four candidates eligible for bonus?
As per the act, a person who is drawing up to Rs.3500/- as wage (Basic + DA) PM, is eligible to get bonus. Using this point you can get to know who is eligible, for bonus, among your above mentioned staff. But almost in all companies employees are being paid bonus irrespective of their wage. If that be the case also, only the first person, who joined in Oct 06, is eligible to get bonus for the FN 2006 – 07.
2. Since their salary is about 10,000 are they right to claim bonus coz they say they used to get bonus in their earlier company where they worked.
Legally they don't have the right to ask for bonus. It's up to the company. But almost in all companies employees are being paid bonus irrespective of their wage.
3. if the management wants to give them bonus how would the bonus be calculated (meaning what which month should counted for giving the bonus coz in our company it is from April to March)
Everywhere it is from April to March only. You mentioned that you calculated for other staff. Like that you can calculate for the eligible person also.
4. Can you pl tell me from which month should we calculate the bonus for each of the above employee?
Since the first person only is eligible, for him only you can calculate (from Oct 06 to March 07).
Regards
M. Helen
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Hi Alex!
During the finalization of employment, we arrive at the CTC to be offered to the candidate. After arriving at the CTC, we inform the candidate about the breakdown of the salary (components, allowances, statutory benefits, etc.) and confirm their understanding of the same. This helps in avoiding problems you are facing now. Hope you will consider the above in future cases.
As of now, only the person who joined in October 2006 is eligible for a bonus in the year 2007. However, this is subject to their basic salary falling below the exemption limit for a bonus. It would be more helpful for anyone to assist you if you could provide us with their basic salaries as well.
- Hiten
From India, New Delhi
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During the finalization of employment, we arrive at the CTC to be offered to the candidate. After arriving at the CTC, we inform the candidate about the breakdown of the salary (components, allowances, statutory benefits, etc.) and confirm their understanding of the same. This helps in avoiding problems you are facing now. Hope you will consider the above in future cases.
As of now, only the person who joined in October 2006 is eligible for a bonus in the year 2007. However, this is subject to their basic salary falling below the exemption limit for a bonus. It would be more helpful for anyone to assist you if you could provide us with their basic salaries as well.
- Hiten
From India, New Delhi
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