Hi, Greetings to All Members!
We are a pharma marketing base company having our employees on PAN India basis.
The query is related to the Bonus amendment that how the profit sharing of the one employer with the one balance sheet can be distributed with the state level minimum wages to the different location employees
how the employer can make this discrimination
Experts share their opinion that we should follow the amendment that 7000 or minimum wages which ever is higher we should consider for bonus calculation.
So, please tell us the calculation process of sales promotion employees deputed in various location.
Thanks,
Shanti Raghavan
From India, Delhi
We are a pharma marketing base company having our employees on PAN India basis.
The query is related to the Bonus amendment that how the profit sharing of the one employer with the one balance sheet can be distributed with the state level minimum wages to the different location employees
how the employer can make this discrimination
Experts share their opinion that we should follow the amendment that 7000 or minimum wages which ever is higher we should consider for bonus calculation.
So, please tell us the calculation process of sales promotion employees deputed in various location.
Thanks,
Shanti Raghavan
From India, Delhi
Dear Ms.Shanti Raghavan,
It seems a bit difficult for me to understand your question.
In labor jurisprudence, place of employment decides the issues of statutory benefits and jurisdictional aspects of remedial measures for employees and not the location of the corporate/managerial head quarters.
When the employment locations of the same class of employees of the same company are scattered across the country and the employment being a scheduled employment under the Minimum Wages Act,1948, disparity in their wages are bound to arise because of the inter state difference in the prevailing statutory minimum wages. It can not be discrimination but only spatial differentiation in wage structure for which the decisive factor is the place of work only.
Besides, bonus under the Payment of Bonus Act,1965 is computed only as a particular percentage to the total earnings of the eligible employees in the accounting year. Therefore what is important to ensure equitability or to eliminate discrimination is the uniformity in the declared percentage of the bonus and not the actual sums received by the employees. I don't think that the notional fixation of wages u/s 12 of the Act for the purpose of bonus calculation based on "whichever higher clause" with reference to statutory minimum wages can disturb this concept.
From India, Salem
5967It seems a bit difficult for me to understand your question.
In labor jurisprudence, place of employment decides the issues of statutory benefits and jurisdictional aspects of remedial measures for employees and not the location of the corporate/managerial head quarters.
When the employment locations of the same class of employees of the same company are scattered across the country and the employment being a scheduled employment under the Minimum Wages Act,1948, disparity in their wages are bound to arise because of the inter state difference in the prevailing statutory minimum wages. It can not be discrimination but only spatial differentiation in wage structure for which the decisive factor is the place of work only.
Besides, bonus under the Payment of Bonus Act,1965 is computed only as a particular percentage to the total earnings of the eligible employees in the accounting year. Therefore what is important to ensure equitability or to eliminate discrimination is the uniformity in the declared percentage of the bonus and not the actual sums received by the employees. I don't think that the notional fixation of wages u/s 12 of the Act for the purpose of bonus calculation based on "whichever higher clause" with reference to statutory minimum wages can disturb this concept.
From India, Salem
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf