Hi All, I work with contact labor for a logistics firm. Regarding the same need to understand if I can disburse Statutory Bonus on monthly basis, and is that compliant as per the law?
From Hong Kong, Central
From Hong Kong, Central
Dear Colleague,
No. The Bonus as per the Provisions of Payment of Bonus Act is payable within 8 months of close of books of accounts. The payment has to go in one go and in one single payment. If you pay minimum Statutory Bonus it is 8.33% of wages earned in that Financial Year restricted to 7000/- or Upon Minimum Wages of that scheduled employment whichever is higher.
They Bonus payment has to be made one time in a year which is statutory. Monthly payment ( as you mentioned) will not meet the Statutory Compliance
Take Care
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
From India, Chennai
309No. The Bonus as per the Provisions of Payment of Bonus Act is payable within 8 months of close of books of accounts. The payment has to go in one go and in one single payment. If you pay minimum Statutory Bonus it is 8.33% of wages earned in that Financial Year restricted to 7000/- or Upon Minimum Wages of that scheduled employment whichever is higher.
They Bonus payment has to be made one time in a year which is statutory. Monthly payment ( as you mentioned) will not meet the Statutory Compliance
Take Care
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
From India, Chennai
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