Hi,
I have the following questions that I need your help on -
1. How is performance bonus arrived at for the CTC? Is it a percentage of just the BASIC or BASIC+HRA+SPECIAL ALLOWANCE? What is the percentage range and a general average percentage in the industry?
2. for the same question as above - how would it change for an IT employee working in a manufacturing setup?
awaiting your early response.
Regards,
Kumar
From United States, Rogers
I have the following questions that I need your help on -
1. How is performance bonus arrived at for the CTC? Is it a percentage of just the BASIC or BASIC+HRA+SPECIAL ALLOWANCE? What is the percentage range and a general average percentage in the industry?
2. for the same question as above - how would it change for an IT employee working in a manufacturing setup?
awaiting your early response.
Regards,
Kumar
From United States, Rogers
Hello,
Firstly, it is clear from your question that you are NOT talking about BONUS under The Payment of Bonus Act 1965.
Therefore you are talking about a "payment" (lumpsum) that an employer is willing to make to his employees. If so, then there has to be "SCHEME" devised by the employer covering eligibilities, quantums, rules and other procedural aspects. The employer has a right to do so! There is no "industry average" needed to be looked at. It is solely the employer's decision on what he can "afford" or how much he wishes to apply for this scheme.
Now whether to include in CTC is a decision of the employer. Conceptually it is wrong, since, if an employee does not become eligible to receive the same in any period, then he will be deprived of something that he had negotiated. When and if this happens employees rightly feel cheated.
Now as to your second question. IT employees are like other employees only whereever they work. The scheme as may be finalized will answer thiis question. Since the work of different groups is different, rules and eligibilities may be different as the "work measurement" for each group may need diffrent approach, but is only natural.
Trust your querries are answered.
Regards
samvedan
December 16, 2010
---------------------
From India, Pune
315Firstly, it is clear from your question that you are NOT talking about BONUS under The Payment of Bonus Act 1965.
Therefore you are talking about a "payment" (lumpsum) that an employer is willing to make to his employees. If so, then there has to be "SCHEME" devised by the employer covering eligibilities, quantums, rules and other procedural aspects. The employer has a right to do so! There is no "industry average" needed to be looked at. It is solely the employer's decision on what he can "afford" or how much he wishes to apply for this scheme.
Now whether to include in CTC is a decision of the employer. Conceptually it is wrong, since, if an employee does not become eligible to receive the same in any period, then he will be deprived of something that he had negotiated. When and if this happens employees rightly feel cheated.
Now as to your second question. IT employees are like other employees only whereever they work. The scheme as may be finalized will answer thiis question. Since the work of different groups is different, rules and eligibilities may be different as the "work measurement" for each group may need diffrent approach, but is only natural.
Trust your querries are answered.
Regards
samvedan
December 16, 2010
---------------------
From India, Pune
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