Dear All, Should exgratia be paid for every financial year along with bonus.Can anyone tell me meaning for DEARNESS ALLOWANCE. Thanks, Uma
From India, Madras
4From India, Madras
Dear
Ex-gratia is a discretionary payment.Normally it is used to make it part of Bonus. Please do not confuse it with Bonus.Dearness allowance is a floating allowance dependent upon the Consumer Price Index.
With Regards
V.Sounder Rajan
From India, Bangalore
Ex-gratia is a discretionary payment.Normally it is used to make it part of Bonus. Please do not confuse it with Bonus.Dearness allowance is a floating allowance dependent upon the Consumer Price Index.
With Regards
V.Sounder Rajan
From India, Bangalore
Hi Uma
As rightly mentioned by Mr.Sounder, exgratia is not mandatory. It is purely the discretion of the management to pay exgratia. Normally when an amount is paid to the employees who are not coverable under the Payment of Bonus Act and when some amount is given in excess to the ceiling prescribed under the Act (Bonus earnings restricted to Rs.3500/- per month), it will be termed as Exgratia in the bilateral/tripartite settlements. Normally exgratia is the amount paid to the employees in recognition of their cooperation and contribution. The employees have no right to demand exgratia unless it is contemplated in a settlement between the employer and employee.
Minimum wages has two components. 1) Basic wages 2) Dearness Allowance. Dearness Allowance prescribed under the Minimum Wages Act will be revised every 6 months once based on the increase in cost of living index.
Companies pay Dearness Allowance to the employees based on the long term wage settlement they enter into with the Unions.
Like Basic wages, Dearness Allowance will also be taken into consideration for indirect benefits such as Bonus, PF, Gratuity, Superannuation etc.
Please revert to me for any clarification.
Have a wonderful day and great week ahead.
Thanks & Regards
Kalyan R
Manager - Personnel
Sundaram-Clayton Ltd
Brakes Division
Chennai.
Mobile: 9840942232
From India, Madras
As rightly mentioned by Mr.Sounder, exgratia is not mandatory. It is purely the discretion of the management to pay exgratia. Normally when an amount is paid to the employees who are not coverable under the Payment of Bonus Act and when some amount is given in excess to the ceiling prescribed under the Act (Bonus earnings restricted to Rs.3500/- per month), it will be termed as Exgratia in the bilateral/tripartite settlements. Normally exgratia is the amount paid to the employees in recognition of their cooperation and contribution. The employees have no right to demand exgratia unless it is contemplated in a settlement between the employer and employee.
Minimum wages has two components. 1) Basic wages 2) Dearness Allowance. Dearness Allowance prescribed under the Minimum Wages Act will be revised every 6 months once based on the increase in cost of living index.
Companies pay Dearness Allowance to the employees based on the long term wage settlement they enter into with the Unions.
Like Basic wages, Dearness Allowance will also be taken into consideration for indirect benefits such as Bonus, PF, Gratuity, Superannuation etc.
Please revert to me for any clarification.
Have a wonderful day and great week ahead.
Thanks & Regards
Kalyan R
Manager - Personnel
Sundaram-Clayton Ltd
Brakes Division
Chennai.
Mobile: 9840942232
From India, Madras
Hi,
Am having 1 confussion for exgratia i.e if a person is leaving an organization then can company consider that exgratia amount as a recovery on employee and can they take it back at the time of employee's full& final.
Goodday
Karuna Kerni
From India, Delhi
Am having 1 confussion for exgratia i.e if a person is leaving an organization then can company consider that exgratia amount as a recovery on employee and can they take it back at the time of employee's full& final.
Goodday
Karuna Kerni
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.