A company can pay bonuses to its employees in 2-3 parts: the first part on the foundation day of the company, the second part on Dussehra Festival, and the remaining balance on Deepawali. All payments should be made after the closing of the financial year and before the end of 8 months from the closing of the financial year.
From India, Delhi
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From India, Delhi
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The poster himself has rightly quoted the maximum time limit for payment of bonus as fixed under section 19(b) of the Payment of Bonus Act, 1965. Yet he raises a question whether it could be paid within the time in installments as per the discretion of the employer. A simple "YES" could be an answer as long as the employees agree to this. At times, some employers facing financial crunch resort to such a practice, and the employees too accept it out of necessity and understanding. But trying to make it a regular practice may sound unethical.
As contemplated under the Act, bonus is a statutory payment based on the performance of the establishment in an accounting year. The main objective behind the arrangement is sharing the profit with the employee and not helping him on festive occasions. When the performance of the establishment is ascertained by balancing the books of accounts and basing on which the minimum or maximum amount of bonus is determined, in the absence of any valid reason for its disbursement in piecemeal, such a proposal by the employer cannot be appreciated, whether or not objected to by the employees.
From India, Salem
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6185As contemplated under the Act, bonus is a statutory payment based on the performance of the establishment in an accounting year. The main objective behind the arrangement is sharing the profit with the employee and not helping him on festive occasions. When the performance of the establishment is ascertained by balancing the books of accounts and basing on which the minimum or maximum amount of bonus is determined, in the absence of any valid reason for its disbursement in piecemeal, such a proposal by the employer cannot be appreciated, whether or not objected to by the employees.
From India, Salem
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