I want to know the difference between Bonus & Ex-gratia. Is Ex-gratia mandatory to provide? Our Company is small scale industry having with 110 employees strength.
The Payment of Bonus Act provides for payment of bonus to persons employed in certain establishments of the basis of profits or on the basis of production or productivity.
It extends to the whole of India and is applicable to every factory and to every other establishment where there are 20 or more workmen employed on any day during an accounting year Eligibility For Bonus Every employee receiving salary or wages upto RS. 10000 p.m. and engaged in any kind of work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every accounting year if he has worked for minimum 30 working days in that particular year.
Exgratia is a voluntary payment by employer to employee. The payment of bonus excluding bonus payable under the PBA is ex-gratia payment and an employer cannot be forced to make such payment.
But where ex-gratia payment is being made to every employee, then the employer can not deny the same to a particular employee as per his wish and fancy…