Dear All,
Iam working as Sr. Executive in a manufacturing company.
We are going for Salary break up restructuring.Kindly, please guide me on the following matters:
1. Management wishes to make bonus (as per bonus act 1965) part of CTC.
Is it legally correct to go for it. .
2. Is there any limit for LTA entitlement for an employee based on CTC.
From India, New Delhi
Iam working as Sr. Executive in a manufacturing company.
We are going for Salary break up restructuring.Kindly, please guide me on the following matters:
1. Management wishes to make bonus (as per bonus act 1965) part of CTC.
Is it legally correct to go for it. .
2. Is there any limit for LTA entitlement for an employee based on CTC.
From India, New Delhi
Dear Prerana,
Bonus is not a part of CTC.Bonus means a reward given once a year at any festival or at the end of year.there is mimi amt specified to be given as bonus but if the company is performing well u can give more bonus..
Bonus can be cash, can be attendance bonus or ESOPS etc..
As Bonus is varying it cant be part of CTC, and reward is never the payment also.
From India, Mumbai
Bonus is not a part of CTC.Bonus means a reward given once a year at any festival or at the end of year.there is mimi amt specified to be given as bonus but if the company is performing well u can give more bonus..
Bonus can be cash, can be attendance bonus or ESOPS etc..
As Bonus is varying it cant be part of CTC, and reward is never the payment also.
From India, Mumbai
The LTA amount is one months basic salary for the employee. You cannot increase more then that.
From India, New Delhi
1From India, New Delhi
Hi, Some companies include Bonus, LTA, Gratuity amount in the CTC. Bonus - 8.33% of basic LTA - One month basic 4.75 % on Basic as gratuity is shown in the CTC This is not illegal. Giri
From India, Bangalore
From India, Bangalore
Dear prerna.parry, Bonus can’t be a part of CTC.. However some companies include bonus to the CTC given..
From India, Bangalore
From India, Bangalore
Dear ,
Any cost incurred by the employer on the employees can be covered in the CTC Whether it is a statutory payment viz. Bonus, Gratuity , Compulsory Insurance etc.The employer enjoys the right to cover all such cost in CTC.But an important point here is that, that employer is not authorised to recover any statutory cost from the employees. Generally Statutory Bonus component is shown separately and no deduction for its payment is shown.
From India, Rohtak
Any cost incurred by the employer on the employees can be covered in the CTC Whether it is a statutory payment viz. Bonus, Gratuity , Compulsory Insurance etc.The employer enjoys the right to cover all such cost in CTC.But an important point here is that, that employer is not authorised to recover any statutory cost from the employees. Generally Statutory Bonus component is shown separately and no deduction for its payment is shown.
From India, Rohtak
Hi Maheh,
Can u tell me where its written the bonus cannot be a part of CTC.
If any employer is paying bonus on flat rate of 8.33%. so, that its gud for employee. whts wrong.
Waiting for your response. Please write the things with reason dont write without reason.
Warm regards,
Rahul
From India, Delhi
Can u tell me where its written the bonus cannot be a part of CTC.
If any employer is paying bonus on flat rate of 8.33%. so, that its gud for employee. whts wrong.
Waiting for your response. Please write the things with reason dont write without reason.
Warm regards,
Rahul
From India, Delhi
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf