What is the minimum festival bonus amount need to pay employees in Karnataka (yearly)?
From India , Bangalore
1From India , Bangalore
What do you mean by Festival Bonus? An employee of an establishment covered by Payment of Bonus Act, whose salary does not exceed Rs 21000 per months shall be entitled to minimum statutory bonus of 8.33% of the annual earned salary in the preceding financial year. Though a new establishment need not pay any bonus for five years, it becomes a mandatory payment from the year in which the establishment made profits.
From India, Kannur
From India, Kannur
Hi,
A Festival Bonus, often referred to as a Dasara or Diwali Bonus or a Year-End Bonus, is a monetary benefit given by employers to their employees during festive seasons or at the end of the year. It is an additional sum of money provided to employees in addition to their regular salary. This bonus is meant to acknowledge and appreciate the hard work and contributions of the employees towards the success and profitability of the company.
The information you provided relates to the regulations under the Payment of Bonus Act. According to this act, if an employee's salary does not exceed Rs 21,000 per month, they are entitled to receive a minimum statutory bonus of 8.33% of their annual earned salary in the preceding financial year.
Additionally, it is mentioned that a new establishment is not required to pay any bonus for the first five years. However, after this initial period, it becomes mandatory to pay bonuses starting from the year in which the establishment starts making profits.
It's important to note that these rules and regulations may vary by country, so it's essential to refer to the specific labour laws and regulations in the relevant jurisdiction
Thanks,.
From India, Bangalore
A Festival Bonus, often referred to as a Dasara or Diwali Bonus or a Year-End Bonus, is a monetary benefit given by employers to their employees during festive seasons or at the end of the year. It is an additional sum of money provided to employees in addition to their regular salary. This bonus is meant to acknowledge and appreciate the hard work and contributions of the employees towards the success and profitability of the company.
The information you provided relates to the regulations under the Payment of Bonus Act. According to this act, if an employee's salary does not exceed Rs 21,000 per month, they are entitled to receive a minimum statutory bonus of 8.33% of their annual earned salary in the preceding financial year.
Additionally, it is mentioned that a new establishment is not required to pay any bonus for the first five years. However, after this initial period, it becomes mandatory to pay bonuses starting from the year in which the establishment starts making profits.
It's important to note that these rules and regulations may vary by country, so it's essential to refer to the specific labour laws and regulations in the relevant jurisdiction
Thanks,.
From India, Bangalore
Bonus may be legal - as per Payment of Bonus Act or extra legal - Festival bonus, profit sharing bonus etc. Extra legal bonus is vary from organization to organization and many organizations are not paying it. But Bonus under the payment of Bonus Act is a statutory one and to be paid as mentioned earlier by two learned friends.
Bonus is a deferred wages which means bonus for Fy 2022-2023 will be required to pay on 2023 within 8 months of completion of accounting year. It is like the 2022-23 financial year has been completed on 31st March,2023 and bonus to be paid on or before 30th November,2023. Usually October & November are festival months as such the statutory bonus is also known as festival bonus. Minimum bonus to be required to pay is 8.33% and maximum 20% of actual basic & DA if the amount is below 7000/- per month. If it is 7000/- or more it should be on the basis of the minimum wages.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
Bonus is a deferred wages which means bonus for Fy 2022-2023 will be required to pay on 2023 within 8 months of completion of accounting year. It is like the 2022-23 financial year has been completed on 31st March,2023 and bonus to be paid on or before 30th November,2023. Usually October & November are festival months as such the statutory bonus is also known as festival bonus. Minimum bonus to be required to pay is 8.33% and maximum 20% of actual basic & DA if the amount is below 7000/- per month. If it is 7000/- or more it should be on the basis of the minimum wages.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
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