We are working in the engineering sector. Our organization wants to follow periodicity of two for payment of the Statutory bonus. One is the routine yearly method of diwali bonus, and another is the monthly bonus. Can we follow both systems in one organization? Please explain.
From India, Ashta
From India, Ashta
Statutory bonus cannot be paid in monthly installments because the bonus for a financial year should be paid within eight months of closing of financial year. If you pay it monthly, it will extend to 12 months, and that is a non compliance. But you can pay it in such installments that the last installment is paid before 8 months of closing the books of accounts. Again, the employees would be benefited if they get a lumpsum amount in hand. Therefore, it is not advisable to pay it even in 8 installments.
From India, Kannur
4226From India, Kannur
The monthly paid bonus is production linked but not govern under any statute act or rules.The annual bonus profit based bonus and govern under the payment of bonus act. The annual bonus for current year is payable on 1st April or by 30th November subsequent year @minimum of 8.33% & maximum of 20% to the employee getting ₹21k or less wages per month.
You can follow the monthly bonus systems as it is linked to production and motivate employee and organization gets more production. This types of bonus schemes introduced to optimize the production, when production goes above the target. The management sanction agreed % of bonus on excess quantity with a set calculated norms.
From India, Mumbai
You can follow the monthly bonus systems as it is linked to production and motivate employee and organization gets more production. This types of bonus schemes introduced to optimize the production, when production goes above the target. The management sanction agreed % of bonus on excess quantity with a set calculated norms.
From India, Mumbai
There is a major dispute on this
We got clarification from senior lawyers who explained that amount paid monthly is salary (even if called bonus) and bonus will still be payable at the end of the year under the payment of bonus act.
Further, if paid monthly, PF and esic is due on it
From India, Mumbai
We got clarification from senior lawyers who explained that amount paid monthly is salary (even if called bonus) and bonus will still be payable at the end of the year under the payment of bonus act.
Further, if paid monthly, PF and esic is due on it
From India, Mumbai
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Amendment to Payment of Bonus Act 2015.jpg
Statutory Compliance of a Industrial or Commercial Unit.xls
Bonus act amendment gazette copy.pdf