No Tags Found!


gaurdm83
3

Greetings to all respected seniors,
I've a query.
Can we reduce or add in current salary sheet heads which are being used in monthly salary process?
For example: basic, hra and ta are current heads but we are planning to add bonus head in monthly salary sheet.
Is it possible in legal way?
Can Bonus be paid on monthly basis?
Can we add bonus in monthly salary sheet head and pay monthly basis?
Company don't have standing order due to lack of employees below 50 employees.
Please suggest best legal way for this issue.
Thanks
Devendra Gaur

From India, Faridabad
Ubaid Raheman
52

This has with reference to your query regarding... adding bonus component in monthly salary structure and pay the same on monthly basis.
Yes... you can pay the bonus on monthly pro-rata basis but you can not club bonus amount to match minimum wage rate, as bonus is not part of the wages.
Also, the same amt. will be exempt from ESIC contributions from both the side, employer as well as employees.

From India, Mumbai
gaurdm83
3

Thank you sir for your valuable guidance for my confusion. You have given me lot of knowledge in less words.
From India, Faridabad
Srinath Sai Ram
610

Dear Devendra, please let us know the ratinale of payment of Bonus on Monthly Basis.You have not mentioned about the % of Bonus Paid Monthly?
From India, New Delhi
korgaonkar k a
2556

How one can pay Bonus monthly with monthly salary???
Bonus is payable as per PoB Act. It is payable for financial year within 8 months on ending of financial year depending upon the profit / allocable surplus after adjusting set off & set on. Paying Bonus monthly is not accordance with Act.

From India, Mumbai
Nagarkar Vinayak L
619

Dear colleague,
The query indicates lack of knowledge about the concept of bonus and provisions of the Payment of Bonus Act.
The bonus payment is linked to profits during the financial year. There is formula given in the Act on how to calculate the bonus. Since the financial results are not yet known, how one can pay bonus in advance on the basis of any assumptions every month?. And at what percentage bonus will be paid?
If anything, one can imagine paying this as an advance against the final bonus payable but all logic defies such payment.
Regards,
Vinayak Nagarkar
HR - Consultant

From India, Mumbai
Anonymous
52

Dear colleagues,
I have seen and experience that many small Organisation / Manpower Service Industries / Security Agency's adopted this method; only the condition is they cannot use the bonus amt. to match Minimum wage and the ESIC shall not be deducted on bonus amt. as it's not part of wages.
About the % of bonus; In such cases its always minimum I.E. 8.33% as it's decided and paid by Principal Employers.
About the provision of the act...
Minimum bonus prescribed under section 10 is payable whether or not the employer has any allocable surplus. However, a newly setup eastablishment is required to pay bonus in respect of an account year in the first five accounting years if it only earns profit in that accounting year. (SECTION 16)
In the act no minimum time line defined or restricted. However, maximum time define for 8 months to pay the bonus from the close of accounting years. and such period is also extended by the Appropriate Govt. (SECTION 11)
Therefore, according to me nothing is wrong to pay bonus on monthly pro-rata basis only the employer have to maintain records and register as defined under Section 26, rule 4.
SENIOURS hereby requested to please interven in the matter and correct me if I am wrong.
With Regards,
Ubaid Raheman
Mumbai, Maharashtra.

From India, Mumbai
Nagarkar Vinayak L
619

Dear colleague, The question is what is the need and propriety of paying bonus prematurely when it is not due ?. Regards, Vinayak Nagarkar HR - Consultant
From India, Mumbai
Ubaid Raheman
52

My question is... What is the problem in paying bonus on monthly pro-rata basis?
Once the employees are eligible for bonus there is no any issue to pay the same on monthly instead of yearly.
In my organization we are adopting this method for few of our contractors, till date we are not facing any non-compliance issues during the inspection / audits.
Is there is any provision under payment of bonus act, which is restricted to pay the bonus on monthly basis?
Please come with reference of the act on the same...!

From India, Mumbai
korgaonkar k a
2556

Dear Ubaid Raheman ji,
Kindly answer following questions yourself and decide what is right & what is wrong.
1. What was the object of the Act - PoB Act though it is not included in the Act?
2. What was the reason to keep due date for payment of bonus within 8 months of closing the financial year?
3. It is a practice to make the payment of bonus generally before Diwali. Why it is so?
4. What do you mean by pro-rata when you do not know the due amount after more that 8 to 19 months and the due amount is depending upon some parameters which are not known to you right now?
5. You adopted a method of paying bonus monthly and you are through with the inspection, it does not mean that you are right. How many law implementing authorities aware of set off / set on, allocable surplus etc.? They do inspection means what they do exactly?
I'm sorry for this post. I could not ignore your post since the post is by Manager HR & IR and I don't want wrong message to go in laalu business community.
Each person may have his own view but the same should be supported with due justification.

From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.