can employer give different % of bonus to different employee of same grade
From India, Thāne
Acknowledge(0)
Amend(0)
From India, Thāne
Acknowledge(0)Amend(0)
As per my opinion, he cannot do that. The Equal Remuneration Act strictly prohibits such kinds of malpractices.
Bonus Calculation
Normally, a bonus will be calculated on the total gross earned in the last financial year and will be multiplied by the bonus percentage, which may be 8.33% or beyond that. So, just at a glance, it cannot be identified whether an employee is given less bonus or more compared to another employee at the same grade. This difference may be due to the number of days he worked in the last financial year.
Minimum Bonus and Ex-Gratia
One more thing, as per the statutory obligations, one must be given a minimum of 8.33% bonus. Whatever exceeds this is called Ex-Gratia. When it comes to Ex-Gratia, the Equal Remuneration Act does not apply as it is the extra sum given for higher performance.
This is my understanding. Please let our seniors share their opinions and clarify this.
From India, Bangalore
Acknowledge(1)
Amend(0)
9Bonus Calculation
Normally, a bonus will be calculated on the total gross earned in the last financial year and will be multiplied by the bonus percentage, which may be 8.33% or beyond that. So, just at a glance, it cannot be identified whether an employee is given less bonus or more compared to another employee at the same grade. This difference may be due to the number of days he worked in the last financial year.
Minimum Bonus and Ex-Gratia
One more thing, as per the statutory obligations, one must be given a minimum of 8.33% bonus. Whatever exceeds this is called Ex-Gratia. When it comes to Ex-Gratia, the Equal Remuneration Act does not apply as it is the extra sum given for higher performance.
This is my understanding. Please let our seniors share their opinions and clarify this.
From India, Bangalore
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.
Equal Remuneration Act 1976.pdf
Equal Remuneration Act 1976.doc