prakash kYes after completion of 5 years, irrespective of the fact whether company earns profit or not, minimum statutory bonus @8.33% needs to be paid as per Payment of Bonus Act.
If we want to reward the employee over and above the provisions of the Act, it is considered as ex-gratia payment.
From India , Madras
I hope that you got the difference b/w bonus vs exgratia,
more over I woukd like to add that bonus is a statutory liability for a company whereas exgratia is a sweetwill,
an eligible employee can claim bonus under Payment of Bonus Act, but no one can claim exgratia
From India , Delhi
deerajHi, just one question, is ex-gratia applicable to all industries? or specific to company policies etc?
From India , Pune
Bonus has to be paid @ min. 8.33% on basic + D.A. (max 20%) for every accounting year (1st apr - 31st mar) irrespective profits as per payment of Bonus Act, 1965 (revised in oct '07). The employee should be in estbt. for above period. if he has worked for partial period bonus will be paid in ratio.
Ex-gratia will be paid at sweet will of employer. Bonus will be paid on the basis of basic + D.A. Ex-gratia can be paidon the basis of basic + D.A.+other allowances No body can claim Ex-gratia. It is reward to employee.
From India , Hyderabad
malvinaYes all registered companies under the companies act have to pay bonus,after 5 yrs of comencing its buz.. as per bonus act.
From India , Calcutta
Ex-gratia is the amount payable by the Company as per the internal policy. How the internal policy comes into existence. For example, if A's company staff strenght is about 1000. Out of which 500 employees fall within the purview of Bonus Act. The remaining 500 do not get bonus as they do not fall under the Bonus Act. When such situation prevails, how do you perceive the employer?. How do keep the morale/commitment of such employee in tact. Thus you formulate a policy or year on year, company would declare ex-gratia amounts depending upon the performace of the company. I think, I have clarified.
Regarding applicability - All factories where 10 or more persons are/were working during the preceding 12 months and the manufacturing process is being carried out with the aid of power. All factories where 20 or more persons are/were working during the preceding 12 months and the manufacturing process is being carried out without aid of power.
All establishment where 20 or more persons are employed on any day during an accounting year.
Govt has got authority to exempt any establishment from the provisions of the Act.
LIC, RBI, Central and State Govt establishments, Universities and other Educational institutes are some of the excluded categories from the applicability of Bonus Act.
I hope, I have clarified the issue.
From India , Madras
meangirlHi When you use internet explorer, pls pay attention to sidebar. You can see articles related, pdf or ppt file…you can find out your info. Best regards
From Vietnam , Hanoi