My friend left his earlier company on 26 March 2013 (DOJ 23.03.2012). A minimum bonus of Rs 3499/- is included in CTC in his offer letter. Now, in his settlement, the company didn't pay the bonus, stating it will be paid in the month of November. Now, he is approaching them, and they are telling him that since his gross was more than Rs 10,000/-, there is no need to pay the bonus. In my opinion, once a bonus is declared as part of CTC, it has to be paid. I advised him to approach with his original offer letter.
Please share your views on this subject.
Regards,
Raghavendra B R
From India, Pune
Acknowledge(0)
Amend(0)
4Please share your views on this subject.
Regards,
Raghavendra B R
From India, Pune
Acknowledge(0)Amend(0)
Yes, once the amount is part of the CTC, he is eligible for the same because, at the time of recruitment and structuring the CTC, the management is very much aware that he is out of the Statutory Bonus purview.
Regards,
Kamesh
From India, Hyderabad
Acknowledge(1)
Amend(0)
Regards,
Kamesh
From India, Hyderabad
Acknowledge(1)Amend(0)
Bonus Payment Obligation
The ceiling is applicable only in the case of a bonus under the Payment of Bonus Act. From what you have stated, I guess the company has made an offer and committed to paying the bonus. Hence, the company needs to pay the bonus.
From India, Chennai
Acknowledge(1)Amend(0)
The ceiling is applicable only in the case of a bonus under the Payment of Bonus Act. From what you have stated, I guess the company has made an offer and committed to paying the bonus. Hence, the company needs to pay the bonus.
From India, Chennai
Acknowledge(1)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.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc