Some companies are showing Bonus in CTC. Is it legally ok. As per the act every company has to pay Bonus to their employees then why company deducting the amount in CTC and paying Bonus in yearly. is it legally ok for this pls. elaborate this.
From India, Jubilee Hills
3From India, Jubilee Hills
Bonus as part of CTC is not incorrect. The company is not deducting it from your salary also. Salary means the gross salary and bonus will be shown outside the gross salary along with other contributions payable by the employer,ie, EPF, ESI (if any) or medical insurance premium. In the monthly payslip also, there will not be any mention about bonus as deduction from salary. It is purely an amount paid over and above salary paid monthly. As such it is a cost to company and that is why it is being reflected in the CTC slip.
From India, Kannur
From India, Kannur
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
Bonus-amendment _206.doc