Dear Santhu_keerthy,
Statutory Bonus in Full and Final settlement of employees is only applicable when all of the following conditions are met (According to the Bonus Act 1965)
1) The company is atleast 5 years old
2) The company has atleast 20 employees
3) The company has made a profit in that year
4) The employees wages are not more than 21000 rupees every month
Employee Wages = Basic Salary + DA (Dearness Allowance)
Please note that employees who have left your organisation are also eligible for their arrears. Employers will have to pay the outstanding bonus of past employees as well
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Regards,
Sairam Bandi
From India, Bengaluru
11Statutory Bonus in Full and Final settlement of employees is only applicable when all of the following conditions are met (According to the Bonus Act 1965)
1) The company is atleast 5 years old
2) The company has atleast 20 employees
3) The company has made a profit in that year
4) The employees wages are not more than 21000 rupees every month
Employee Wages = Basic Salary + DA (Dearness Allowance)
Please note that employees who have left your organisation are also eligible for their arrears. Employers will have to pay the outstanding bonus of past employees as well
Tap the "+" sign for more helpful answers like these
Regards,
Sairam Bandi
From India, Bengaluru
Hi sairam,
I know the above information, we are paying Every year statutory bonus in b/w sept or oct MONTH but our management is saying instead of giving month of Oct adding to the F&F calculation itself, if employee quit.is it correct.
For Exp:F&F
25 days Salary=15000/-
Leave with wages=8000/
Bonus=?
Total
From India, Bangalore
I know the above information, we are paying Every year statutory bonus in b/w sept or oct MONTH but our management is saying instead of giving month of Oct adding to the F&F calculation itself, if employee quit.is it correct.
For Exp:F&F
25 days Salary=15000/-
Leave with wages=8000/
Bonus=?
Total
From India, Bangalore
Dear Santhosh,
Statutory bonus certainly forms part of the F&F Settlement. It can not be denied just because of the fact that the employee's exit happens to be in the middle of an Accounting Year unless the outgoing employee has not worked for 30 days in the year. However, the only difficulty would be the amount of bonus since the books of accounts for that particular AY are yet to be balanced. Therefore, alternatively it can be mentioned in the F&F that proportionate bonus for the service rendered upto the termination of employment of the individual would be paid later when the quantum of bonus for the AY is determined.
From India, Salem
Statutory bonus certainly forms part of the F&F Settlement. It can not be denied just because of the fact that the employee's exit happens to be in the middle of an Accounting Year unless the outgoing employee has not worked for 30 days in the year. However, the only difficulty would be the amount of bonus since the books of accounts for that particular AY are yet to be balanced. Therefore, alternatively it can be mentioned in the F&F that proportionate bonus for the service rendered upto the termination of employment of the individual would be paid later when the quantum of bonus for the AY is determined.
From India, Salem
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