Dear All,
A few companies use 'Bonus' as a tool to improve productivity but sometimes employees think it is their right. There seems to be quite an amount of confusion especially when it comes to Knowledge industry like ITeS (including but not limited to SaaS, Software Developement, Engineering Services)
My questions are
1) So first of all what does our laws say about bonus when it comes in general and in particular ITeS
2) What are the choices an employer has with regards to Bonus payments especially if it is a start up?
(a) Suppose we decide to give a productivity bonus then should we also give a general bonus
3) I understand from some of my contemprories that one month's salary is the minimum to be paid as bonus? Is this a must or can the organization define the bonus amount
Experts kindly throw some Gyan on this topic
Thank you
AL
From France, Boulogne-billancourt
A few companies use 'Bonus' as a tool to improve productivity but sometimes employees think it is their right. There seems to be quite an amount of confusion especially when it comes to Knowledge industry like ITeS (including but not limited to SaaS, Software Developement, Engineering Services)
My questions are
1) So first of all what does our laws say about bonus when it comes in general and in particular ITeS
2) What are the choices an employer has with regards to Bonus payments especially if it is a start up?
(a) Suppose we decide to give a productivity bonus then should we also give a general bonus
3) I understand from some of my contemprories that one month's salary is the minimum to be paid as bonus? Is this a must or can the organization define the bonus amount
Experts kindly throw some Gyan on this topic
Thank you
AL
From France, Boulogne-billancourt
As per Payment of Bonus Act, a company (whether acquired profit or loss - no matter), has to pay Bonus to all the employees, ranging from 8.33% to 20% of their salary subject to maximum of Salary Rs.3500/- to be taken into account. Hence the Maximum Amount payable is Rs.8400/- and in excess whatever the company is paying is considered as Ex-gratia (share on the Profit) and it cannot be claimed as right.
Let us expect the views from other learned members too.
From India, Kumbakonam
1166Let us expect the views from other learned members too.
From India, Kumbakonam
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