Hi there,
I would like to know when the bonus has to be released. If an employee has resigned and served his or her notice period, can we add the bonus amount to their full and final settlement, or are we required to release it on Diwali as per company policy?
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I would like to know when the bonus has to be released. If an employee has resigned and served his or her notice period, can we add the bonus amount to their full and final settlement, or are we required to release it on Diwali as per company policy?
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Please refer to Sec. 19 of the Payment of Bonus Act, 1965, which sets the time limit for the payment of bonuses. As per Sec. 19(b), all amounts payable to an employee by way of bonus under the Act shall be paid in cash by the employer within a period of 8 months from the date of the close of the accounting year. If the F&F settlement occurs after the declaration of the bonus for the accounting year, you can add it to the F&F amount. Otherwise, you can pay it later within the prescribed time limit.
Regards
From India, Salem
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6108Regards
From India, Salem
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Dear Seniors,
I would like to know that now the bonus limit is ₹21,000, and if the salary of an employee is more than ₹21,000, then what amount will be paid to the employee.
Some companies are paying ex-gratia to the employees exceeding the salary limit as per the bonus act. What is the criteria for calculating the ex-gratia payment?
From India, Jalandhar
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I would like to know that now the bonus limit is ₹21,000, and if the salary of an employee is more than ₹21,000, then what amount will be paid to the employee.
Some companies are paying ex-gratia to the employees exceeding the salary limit as per the bonus act. What is the criteria for calculating the ex-gratia payment?
From India, Jalandhar
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Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc