Payment of bonus/ ex-gratia
Sudha
(Querist) 12 January 2015
This query is : Resolved
Dear Experts,
In my present monthly CTC Ex-gratia/bonus component is included which is retained by the company and the accumulated amount is paid once in a year during Diwali. if someone leaves the company can the amount of ex-gratia be lapsed or it should be paid along with F&F?
Sudha
(Querist) 12 January 2015
As per my understanding, if the Ex-gratia component is included in Monthly CTC it means that it is considered to be a committed amount to the employee and must be paid irrespective of loss/profit of the company and the period of service tenure of the employee. e.g. XYZ's monthly CTC is 50000/- which includes 1500/- Ex-gratia which is being retained by the company on monthly basis and the accumulated amount (from April to March) being refunded every Diwali . if XYZ serves the company for 3 years and leaves in the month of May, can the amount retained from April last year to May current year towards Ex-gratia be forfeited giving an excuse that the employee is not available till diwali? please advise!!
Kumar Doab
(Expert) 12 January 2015
Your understanding is correct.
The amounts mentioned are promised amounts.
The reason does not cut ice that employee should be in employment on day of disbursement.....
The bonus referred to by you may be as per Payment of Bonus Act (by sweet will of employer .....since your wages are above wage ceiling in the Act)...or it may be some other amount referred as Bonus.
Rajendra K Goyal
(Expert) 13 January 2015
Prorate ex-Gratia need to be paid by the Company.
