Hi,
We are deducting a bonus of Rs. 292 (considering basic+DA as Rs. 3500/- * 8.33%) for the employees who have basic+DA greater than or equal to Rs. 3500/-. Is this the right practice, or should we proceed by considering 8.33% on the basic pay, even if it is higher than Rs. 3500/-? We have many employees whose basic pay is much more than Rs. 3.5k. Kindly advise.
MK
9901381978
From India, Bangalore
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We are deducting a bonus of Rs. 292 (considering basic+DA as Rs. 3500/- * 8.33%) for the employees who have basic+DA greater than or equal to Rs. 3500/-. Is this the right practice, or should we proceed by considering 8.33% on the basic pay, even if it is higher than Rs. 3500/-? We have many employees whose basic pay is much more than Rs. 3.5k. Kindly advise.
MK
9901381978
From India, Bangalore
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Dear M.K,
If your company is giving a bonus as per the government regulations, you are doing it right. If your company wishes to provide more than the government-mandated amount, you can deduct a declared percentage of the basic salary as per your company policy. However, it is important to note that you cannot offer less than the amount specified by the government.
Thanks,
Anil Jangid
From India, Vadodara
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2If your company is giving a bonus as per the government regulations, you are doing it right. If your company wishes to provide more than the government-mandated amount, you can deduct a declared percentage of the basic salary as per your company policy. However, it is important to note that you cannot offer less than the amount specified by the government.
Thanks,
Anil Jangid
From India, Vadodara
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Dear MK,
Bonus is to be paid to the eligible employees. It is not to be deducted from the employees. Why are you deducting?
Regards,
R.N. Khola
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
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Bonus is to be paid to the eligible employees. It is not to be deducted from the employees. Why are you deducting?
Regards,
R.N. Khola
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
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Dear MK,
What you are doing is not right. You are not supposed to deduct a bonus from an employee's salary. It is a statutory right that all eligible employees (gross up to $10,000) are supposed to enjoy once every year out of company profits and not from an employee's own pocket. Please, for God's sake, get the HR practices right in the company. Don't say it's the company policy because, if so, then I am sorry to say it's an absolutely ridiculous policy.
Regards
From India, New Delhi
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What you are doing is not right. You are not supposed to deduct a bonus from an employee's salary. It is a statutory right that all eligible employees (gross up to $10,000) are supposed to enjoy once every year out of company profits and not from an employee's own pocket. Please, for God's sake, get the HR practices right in the company. Don't say it's the company policy because, if so, then I am sorry to say it's an absolutely ridiculous policy.
Regards
From India, New Delhi
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Dear MK,
I hope you heard RN Khola LOUD & CLEAR. A bonus is something that's paid from the company's coffers to express gratitude for the good work done. It's not like the Jew in Shakespeare's "Merchant of Venice" - taking from the employee and giving it back to him as if the company is doing a favor!
Rgds, TS
From India, Hyderabad
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I hope you heard RN Khola LOUD & CLEAR. A bonus is something that's paid from the company's coffers to express gratitude for the good work done. It's not like the Jew in Shakespeare's "Merchant of Venice" - taking from the employee and giving it back to him as if the company is doing a favor!
Rgds, TS
From India, Hyderabad
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Our advocate friend Yadula Prakash has succinctly put it right. You cannot deduct bonus from anyone’s salary. But you can show it as a component under CTC. S. Krishnamoorthy
From United States, Roslindale
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From United States, Roslindale
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What if employee is working in bank, then will his/her bonus be deducted from CTC or still employee will get it apart from salary i.e company’s pocket
From India, Mumbai
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From India, Mumbai
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Dear Awvik What if the employee is working with bank still the bonus will be calculated in CTC or from company’s pocket
From India, Mumbai
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From India, Mumbai
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Hi everyone,
Thanks for your kind reply. Let me make one issue clear - we are not deducting the bonus from employees' gross pay; it is part of CTC. For calculation, we are considering 3.5k as the ceiling, and above that, we are considering 292/- only for the bonus part. Hope this is right?
May I also know a few more details about bonus calculations and obligations, please?
Kindly reply.
Manikumar
9901381978
manikumarhr@gmail.com
From India, Bangalore
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Thanks for your kind reply. Let me make one issue clear - we are not deducting the bonus from employees' gross pay; it is part of CTC. For calculation, we are considering 3.5k as the ceiling, and above that, we are considering 292/- only for the bonus part. Hope this is right?
May I also know a few more details about bonus calculations and obligations, please?
Kindly reply.
Manikumar
9901381978
manikumarhr@gmail.com
From India, Bangalore
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Dear Prachi,
Yes, it's the same for all employees. Bonus cannot be paid from the employees' pocket. Taking it as a part of the CTC is okay, but you cannot deduct the same from the employees' gross salary. It is only a cost component that is borne by the company as an employee benefit.
Hope you understand.
Regards,
From India, New Delhi
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Yes, it's the same for all employees. Bonus cannot be paid from the employees' pocket. Taking it as a part of the CTC is okay, but you cannot deduct the same from the employees' gross salary. It is only a cost component that is borne by the company as an employee benefit.
Hope you understand.
Regards,
From India, New Delhi
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