I wanted to know if any employee is basic+DA is 12000K per month what amount should we consider for bonus and gratuity?
From India, Kolhapur
Acknowledge(0)
Amend(0)
3From India, Kolhapur
Acknowledge(0)Amend(0)
He is not entitled to receive a bonus under the Payment of Bonus Act, 1965. As far as the gratuity payment calculation is concerned, the amount of basic and DA shown by you is to be considered.
Regards,
R.N. Khola
From India, Delhi
Acknowledge(0)Amend(0)
Regards,
R.N. Khola
From India, Delhi
Acknowledge(0)Amend(0)
Dear Sachin Aute,
I agree with the statement made by Mr. Khola that, in accordance with the provisions of the Bonus Act, an individual receiving a salary of more than Rs. 10,000/- is not entitled to a bonus. Additionally, they are eligible for gratuity based on their basic salary + D.A. after completing five years of continuous service in the same organization.
Regards,
KIRAN KALE
From India, Kolhapur
Acknowledge(0)Amend(0)
I agree with the statement made by Mr. Khola that, in accordance with the provisions of the Bonus Act, an individual receiving a salary of more than Rs. 10,000/- is not entitled to a bonus. Additionally, they are eligible for gratuity based on their basic salary + D.A. after completing five years of continuous service in the same organization.
Regards,
KIRAN KALE
From India, Kolhapur
Acknowledge(0)Amend(0)
I have just completed 5 years with my company. My question is: Can a company deduct gratuity from the monthly salary as they deduct PF? I have just received a letter indicating that along with my PF deduction, there will also be a gratuity deduction. Please let me know if this is the correct procedure, as employees who have been with the company for the last 7-8 years have never had any gratuity deducted.
Regards,
Lucille
From India, Mumbai
Acknowledge(0)Amend(0)
Regards,
Lucille
From India, Mumbai
Acknowledge(0)Amend(0)
Dear, As per the Bonus and Payment Act of 1965, the employee is eligible for 8.33% of their basic salary as a bonus, and the gratuity eligibility is 4.15%. However, gratuity calculation is based on the duration of service in years. The minimum requirement for service is 5 years or 240 working days each year for up to 5 years.
Thank you.
From India, Surat
Acknowledge(0)Amend(0)
Thank you.
From India, Surat
Acknowledge(0)Amend(0)
Dear Lucille,
Gratuity is a liability of an employer once an employee has completed 5 years of service, and upon the employee's exit from the company, gratuity should be paid to them. Therefore, deducting it from the employee's salary is not permissible; it is against the law and contrary to the provisions.
One possibility is that if you and the management agree to an annual payment fixed on a package basis, it may include gratuity in the CTC. Please verify this. If there is no such agreement, you should protest against this practice to prevent any further negative consequences in the future.
Regards,
KIRAN KALE
From India, Kolhapur
Acknowledge(0)Amend(0)
Gratuity is a liability of an employer once an employee has completed 5 years of service, and upon the employee's exit from the company, gratuity should be paid to them. Therefore, deducting it from the employee's salary is not permissible; it is against the law and contrary to the provisions.
One possibility is that if you and the management agree to an annual payment fixed on a package basis, it may include gratuity in the CTC. Please verify this. If there is no such agreement, you should protest against this practice to prevent any further negative consequences in the future.
Regards,
KIRAN KALE
From India, Kolhapur
Acknowledge(0)Amend(0)
Dear Lucille,
The observation made by Kiran Kale is correct. Maybe as he has rightly pointed out, it has been shown as part of CTC and may not be a deduction. The gratuity contribution of the employer will generally be shown along with the PF contribution from the employer side. As the PF contribution is equivalent to the employee contribution, you would have assumed that gratuity will also be deducted.
Can you please update the status.
M.V. KANNAN
From India, Madras
Acknowledge(0)Amend(0)
The observation made by Kiran Kale is correct. Maybe as he has rightly pointed out, it has been shown as part of CTC and may not be a deduction. The gratuity contribution of the employer will generally be shown along with the PF contribution from the employer side. As the PF contribution is equivalent to the employee contribution, you would have assumed that gratuity will also be deducted.
Can you please update the status.
M.V. KANNAN
From India, Madras
Acknowledge(0)Amend(0)
Dear Lucille,
There is no provision for the deduction of salary on account of gratuity. Gratuity is paid to the employee after completion of 5 years in the organization for their good behavior. An employee is eligible for gratuity after completion of 5 years only. If the employer deducts any amount from the salary for gratuity, and an employee leaves the organization before completing 5 years, how will the gratuity be paid to the employee?
Employers are not eligible to deduct any amount from the salary for gratuity.
From India, Delhi
Acknowledge(0)Amend(0)
There is no provision for the deduction of salary on account of gratuity. Gratuity is paid to the employee after completion of 5 years in the organization for their good behavior. An employee is eligible for gratuity after completion of 5 years only. If the employer deducts any amount from the salary for gratuity, and an employee leaves the organization before completing 5 years, how will the gratuity be paid to the employee?
Employers are not eligible to deduct any amount from the salary for gratuity.
From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SALARY SHEET CALCULATION.xls
Salary calculation.doc