Hello, could you assist me in determining the accuracy of this breakup? Do I need to make any modifications?
Transition to Monthly Statutory Bonus
We have transitioned to disbursing the statutory bonus on a monthly basis, which used to be included in the annual component. Now that we're making monthly payments for the statutory bonus, where should I specify this component in the monthly structure?
From India, Lucknow
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Transition to Monthly Statutory Bonus
We have transitioned to disbursing the statutory bonus on a monthly basis, which used to be included in the annual component. Now that we're making monthly payments for the statutory bonus, where should I specify this component in the monthly structure?
From India, Lucknow
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There are a lot of issues with the breakup. But your apprehension is only with reference to the payment of the bonus monthly, right? Therefore, let me answer it first. You cannot pay statutory bonus in monthly installments. There are two issues. First, the bonus is actually deferred wages paid annually to make the employee comfortable with a certain sum. Second, the bonus pertaining to a financial year should be paid within eight months of that financial year. That is the law. That means you cannot stretch beyond 8 months.
Other comments
You are calculating the EPF contribution on Basic pay only. You should consider supplementary allowance also and then cap it to Rs 15,000. The LTA should not form part of the Salary breakup but you can put it outside the Salary and form part of the Cost to Company.
The Net salary means the take-home salary, and it should be the salary after deducting the PF, TDS, etc. You can add the Employer's contribution to PF, Bonus, LTA, and even Gratuity (not the right practice, I would say) to Gross salary (i.e., salary before deducting employees' contribution to PF) and make it Cost to Company.
From India, Kannur
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4526Other comments
You are calculating the EPF contribution on Basic pay only. You should consider supplementary allowance also and then cap it to Rs 15,000. The LTA should not form part of the Salary breakup but you can put it outside the Salary and form part of the Cost to Company.
The Net salary means the take-home salary, and it should be the salary after deducting the PF, TDS, etc. You can add the Employer's contribution to PF, Bonus, LTA, and even Gratuity (not the right practice, I would say) to Gross salary (i.e., salary before deducting employees' contribution to PF) and make it Cost to Company.
From India, Kannur
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Amendment to Payment of Bonus Act 2015.jpg
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Salary breakup format.xls