Dear all,
The statutery percentage of bonus starts with 8.33 and maximum is 20%.
My Questions are
1. If my company wishes to give bonus of >20%, what is the legal
position with respect to IT.
2. Can the company fix slabs of bonus for different range of basic pays.
eg. All employees getting below 5000 basic--20,000/- as Bonus
From 5001-10,000-- 30,000/-as Bonus
Above 10,000--35000/-as Bonus
If the employees has no objection for this, can the thecompany
impliment this. What is the legal position.
3. If salary structure is the prerogative of the company, It can fix the
10,000/- salary with a basic of 1000/-. whci effects PF outgo. This
is of particular importance as some employees getting lower salary
are showing resiatance to PF & ESI.
4. Is Bonus, Production Bonus, Rewards etc also added for the
calculation of PF & ESI.
As cost of living increased, the employees at the lower slary slab are the
ones, who are getting most affected. I am only trying to figure out the ways to find less Outgo for the company and employee and the employee should get the same or more salary pocket( as the company benifits from the saving in employers share, it can pass on some part of it.).
But How THE LAW LOOKS AT THIS?
Hope getting reply.
From India, Visakhapatnam
The statutery percentage of bonus starts with 8.33 and maximum is 20%.
My Questions are
1. If my company wishes to give bonus of >20%, what is the legal
position with respect to IT.
2. Can the company fix slabs of bonus for different range of basic pays.
eg. All employees getting below 5000 basic--20,000/- as Bonus
From 5001-10,000-- 30,000/-as Bonus
Above 10,000--35000/-as Bonus
If the employees has no objection for this, can the thecompany
impliment this. What is the legal position.
3. If salary structure is the prerogative of the company, It can fix the
10,000/- salary with a basic of 1000/-. whci effects PF outgo. This
is of particular importance as some employees getting lower salary
are showing resiatance to PF & ESI.
4. Is Bonus, Production Bonus, Rewards etc also added for the
calculation of PF & ESI.
As cost of living increased, the employees at the lower slary slab are the
ones, who are getting most affected. I am only trying to figure out the ways to find less Outgo for the company and employee and the employee should get the same or more salary pocket( as the company benifits from the saving in employers share, it can pass on some part of it.).
But How THE LAW LOOKS AT THIS?
Hope getting reply.
From India, Visakhapatnam
Dear Team I need a similar clarity in line with Raparla’s query. Could someone please elaborate..and help Regards
From India, Hyderabad
From India, Hyderabad
Dear Raparia,
Salary for Bonus coverage is Rs. 10,000. For this categoty you have to provide the statutory rights. In addition as per your wish, you can give something in terms of Ex gratia.
Similarly for those who are out of coverage of Bonus, you can make a package.
Better you can arrange the basic, D.A etc. so as to get the employees maximum benefits.
Abbas.P.S
From India, Bangalore
517Salary for Bonus coverage is Rs. 10,000. For this categoty you have to provide the statutory rights. In addition as per your wish, you can give something in terms of Ex gratia.
Similarly for those who are out of coverage of Bonus, you can make a package.
Better you can arrange the basic, D.A etc. so as to get the employees maximum benefits.
Abbas.P.S
From India, Bangalore
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