Dear all members, Our company auditor asking for clarification? Bonus is a part of CTC? Please clearly Bonus is a part of CTC and provide any notification if there.
From India, Bangalore
4From India, Bangalore
Dear Nikhilraj,
CTC (Cost to company) is consist of all cost which occure toward any employees, its like, PF (Employer contribution), ESIC (employer contribution), Medicalim, Personal accident policy, bonus, etc..
& there is nothing any notification by gov. as it is not concern to gov. its purely company policy. this is unwritten corporate law.
Regards,
Tushar Swar
From India, Mumbai
CTC (Cost to company) is consist of all cost which occure toward any employees, its like, PF (Employer contribution), ESIC (employer contribution), Medicalim, Personal accident policy, bonus, etc..
& there is nothing any notification by gov. as it is not concern to gov. its purely company policy. this is unwritten corporate law.
Regards,
Tushar Swar
From India, Mumbai
The items falling and part of the CTC is a matter of company; which it wants to include to arrieve at.
As per law, bonus calculated on profits and for the same redister A,B,C,D are maintained by the companies. At present, the eligibility for bonus is employment of minimum of 30 days in the previous year and salary of Rs 10000.00. If we are paying bonus for a person having salary of Rs 20000.00; technically the payment to such person given as bonus is incorrect. It shall be an exgratia.
Therefore, from the law point of view, it is incorrect to mention bonus in the CTC (it requires declaration for the financial year; it has been given).
Largely, companies having practice of showing Bonus and Gratuity as a part of the CTC.
From India, Jaipur
As per law, bonus calculated on profits and for the same redister A,B,C,D are maintained by the companies. At present, the eligibility for bonus is employment of minimum of 30 days in the previous year and salary of Rs 10000.00. If we are paying bonus for a person having salary of Rs 20000.00; technically the payment to such person given as bonus is incorrect. It shall be an exgratia.
Therefore, from the law point of view, it is incorrect to mention bonus in the CTC (it requires declaration for the financial year; it has been given).
Largely, companies having practice of showing Bonus and Gratuity as a part of the CTC.
From India, Jaipur
Dear Nikhilraj,
Greetings for the day,
CTC means the cost to company i.e what is the cost of an employee bearing by the company including the gross salary. in addition to pon1965 i also agree any componsation & benefit provided to employee is considerd as CTC , bonus is the part of it. For this no notifiaction is required either form the side.
thanks & regards,
From,
sumit kumar saxena
From India, Ghaziabad
Greetings for the day,
CTC means the cost to company i.e what is the cost of an employee bearing by the company including the gross salary. in addition to pon1965 i also agree any componsation & benefit provided to employee is considerd as CTC , bonus is the part of it. For this no notifiaction is required either form the side.
thanks & regards,
From,
sumit kumar saxena
From India, Ghaziabad
In order to project an inflated CTC amount, Bonus amount is considered as part of CTC (all benefits given to
employee converted into cash value) shall be total COST TO COMPANY (CTC) for an employee.
This is a procedure used by HR team in salary fitment process, before appointing an employee and
before offering a position .
Thanks
R K Nair
From India, Aizawl
employee converted into cash value) shall be total COST TO COMPANY (CTC) for an employee.
This is a procedure used by HR team in salary fitment process, before appointing an employee and
before offering a position .
Thanks
R K Nair
From India, Aizawl
Dear Nikhilraj
Cost to Company (CTC) is not a statutory term defined in any of the Labour Laws, therefore CTC has no statutory standing.
Bonus is a statutory term and is subject to certain terms and conditions defined under The Payment of Bonus Act.
So to include Bonus in CTC or not to include is entirely for the purpose of Company Accounts and Finances and its internal policy.
From India, Mumbai
Cost to Company (CTC) is not a statutory term defined in any of the Labour Laws, therefore CTC has no statutory standing.
Bonus is a statutory term and is subject to certain terms and conditions defined under The Payment of Bonus Act.
So to include Bonus in CTC or not to include is entirely for the purpose of Company Accounts and Finances and its internal policy.
From India, Mumbai
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.
Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf