Hello all,
Do we include a bonus as part of full and final settlement? When an employee leaves prior to the company declaring a bonus for that year (for example, if he leaves in February and the bonus is usually given in October), is the company liable to pay his share of the bonus as part of the full and final settlement?
Kindly respond.
Thanks.
From India, Bangalore
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2Do we include a bonus as part of full and final settlement? When an employee leaves prior to the company declaring a bonus for that year (for example, if he leaves in February and the bonus is usually given in October), is the company liable to pay his share of the bonus as part of the full and final settlement?
Kindly respond.
Thanks.
From India, Bangalore
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Hi,
If you show a bonus in CTC, then you have to. Generally, a bonus is paid at 8.33% per month on basic + DA for every financial year if the salary is up to Rs. 2500 per month. Otherwise, this may be called ex-gratia. The payment is linked to the number of days worked (including leave with salary) in any particular financial year. Normally, all organizations give the bonus amount at the time of full and final settlement.
Regards,
From India
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If you show a bonus in CTC, then you have to. Generally, a bonus is paid at 8.33% per month on basic + DA for every financial year if the salary is up to Rs. 2500 per month. Otherwise, this may be called ex-gratia. The payment is linked to the number of days worked (including leave with salary) in any particular financial year. Normally, all organizations give the bonus amount at the time of full and final settlement.
Regards,
From India
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Usually, companies pay bonuses within eight months from the end of the financial year. It is not a question of whether the employee is covered under the Payment of Bonus Act or not. If your appointment letter and compensation terms agree to pay a bonus, the company is liable to pay the bonus at the end of the financial year. Some companies clear bonuses with the final settlement, while some pay at the end of the financial year after declaring the bonus rate. Whatever the case, you should receive the bonus.
Suvajit Choudhury
From India, Delhi
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Suvajit Choudhury
From India, Delhi
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Hi, As we give the bonus for the work done profit generated in a previous year, it should be included in the full & final.
From India, New Delhi
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From India, New Delhi
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Please help me in this regard. My appointment letter shows a component of Annual Bonus which was to be paid to me after serving the company for a year. I am a confirmed employee with the company and need to give a two months' notice or two months of basic salary upon resigning.
Please help me to know if the company is liable to pay that bonus amount in full or if they can make some deductions from it. (Nothing is mentioned in this regard in my offer/appointment letter.) Also, if I leave the company without proper notice, can I claim my balance bonus amount after deducting two months of my basic salary from the bonus amount in my Full and Final Settlement (F&F)?
Thanks,
Anurag Gera
From India, New Delhi
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Please help me to know if the company is liable to pay that bonus amount in full or if they can make some deductions from it. (Nothing is mentioned in this regard in my offer/appointment letter.) Also, if I leave the company without proper notice, can I claim my balance bonus amount after deducting two months of my basic salary from the bonus amount in my Full and Final Settlement (F&F)?
Thanks,
Anurag Gera
From India, New Delhi
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Full n final settlement.doc
Full & Final Payment.xls