Longevity bonus is paid as 10% of yearly gross salary after completion of 4 years of service. If the yearly gross keeps on changing after appraisal every year then how should the longevity bonus be calculated after the end of 4 years of service? Please advise.
From India, Kolkata
1From India, Kolkata
Hi Sandip, The issue is simple with every increase in the yearly salary the bonus 10% should be added. The term longevity bonus can be otherwise called as Service weightage benefit.
From India, Hyderabad
From India, Hyderabad
Hi Venkata, My question was that after 4 years how will I calculate the bonus? Since the gross salary keeps on changing every year what will be the total bonus after 4 years?
From India, Kolkata
From India, Kolkata
Dear Sandip,
" Longevity Bonus " is a discretionary bonus paid by the employer to those employees who have rendered a long stretch of service in the same establishment. It can be in the form of one-time lump sum payment or certain percentage on their current salary or share certificates of a certain value. It is purely at the discretion of the employer to recognize the loyalty of such employees in serving the establishment for a substantial no. of years.
From India, Salem
" Longevity Bonus " is a discretionary bonus paid by the employer to those employees who have rendered a long stretch of service in the same establishment. It can be in the form of one-time lump sum payment or certain percentage on their current salary or share certificates of a certain value. It is purely at the discretion of the employer to recognize the loyalty of such employees in serving the establishment for a substantial no. of years.
From India, Salem
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf