Dear All, I have gone through the act but i am unable to find that:
As per sec.10 minimum bonus 8.33% is mandatory, can this mandatory bonus can be paid on monthly basis.
If Yes then can this monthly bonus be deducted from the bonus calculated on allocable surplus.
If yes should the return be submitted on monthly basis or on yearly basis.
The employee who has left the services in mid of financial year is entitled to get bonus more than 8.33% based on allocable surplus.
Seniors are requested to guide on the matter.
From India, Gandhidham
1As per sec.10 minimum bonus 8.33% is mandatory, can this mandatory bonus can be paid on monthly basis.
If Yes then can this monthly bonus be deducted from the bonus calculated on allocable surplus.
If yes should the return be submitted on monthly basis or on yearly basis.
The employee who has left the services in mid of financial year is entitled to get bonus more than 8.33% based on allocable surplus.
Seniors are requested to guide on the matter.
From India, Gandhidham
Dear Bhanu,
I had never hard about monthly statutory bonus payment.
There is no hard and fast rule that it cannot be paid. We have to pay the certain amount on 8.33% for the financial year. If employee had left also he can claim for that.
I would like expert for their view.
From India, Bhubaneswar
I had never hard about monthly statutory bonus payment.
There is no hard and fast rule that it cannot be paid. We have to pay the certain amount on 8.33% for the financial year. If employee had left also he can claim for that.
I would like expert for their view.
From India, Bhubaneswar
Once the amount of bonus is calculated, it is to be disbursed within eight months of the end of the financial year. That means, bonus for the financial year 2010-11 should be paid before 30th Nov 2011. Therefore, you can pay it in eight installments provided the employees agree to it.
Regarding Bonus as part of CTC, it is only an adjustment whereby the total remuneration is boosted to attract employees and nothing else. It has no legal sanctity.
Moreover, if you predetermine the bonus and pay it on a monthly basis along with monthly salary (as it is as per CTC) then it will attract ESI because any payment made other than reimbursements in an interval of not more than two months shall be treated as wages for the purpose of ESI.
Regards,
Madhu.T.K
From India, Kannur
Regarding Bonus as part of CTC, it is only an adjustment whereby the total remuneration is boosted to attract employees and nothing else. It has no legal sanctity.
Moreover, if you predetermine the bonus and pay it on a monthly basis along with monthly salary (as it is as per CTC) then it will attract ESI because any payment made other than reimbursements in an interval of not more than two months shall be treated as wages for the purpose of ESI.
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu,
One query.....
One company belongs to a group and in India it is registered in the year 2009. Our group head office at abroad and division head office also at abroad but different location.
In India it is bearing loss and our head office doesn't bay bonus and making profit. Will it is liable to pay bonus at India as group is making profit and very old company more than 6 decade.
Your view will be highly appreciated.
From India, Bhubaneswar
One query.....
One company belongs to a group and in India it is registered in the year 2009. Our group head office at abroad and division head office also at abroad but different location.
In India it is bearing loss and our head office doesn't bay bonus and making profit. Will it is liable to pay bonus at India as group is making profit and very old company more than 6 decade.
Your view will be highly appreciated.
From India, Bhubaneswar
Thanks to all for valuable guidence,
By paying monthly bonus employee will get more in hand on monthly basis.
pls also guide on my another queries that are related to return submission and bonus more than 8.33% in case of left employees.
With Regards
Bhanu
From India, Gandhidham
By paying monthly bonus employee will get more in hand on monthly basis.
pls also guide on my another queries that are related to return submission and bonus more than 8.33% in case of left employees.
With Regards
Bhanu
From India, Gandhidham
Monthly Bonus???? ...WOW......Give me your Company Name.....i would surely wish to join.........................rgrds
From India, Mumbai
From India, Mumbai
Branches of a group can be clubbed together for determining bonus liability. However, if each unit has separate registration and each unit prepares separate Financial Statements (P&L A/C and Balance Sheet) and files separate It returns, then each will be taken separately for bonus payment. But an establishment once paid bonus can not abstain form it due to the reason that it is running in loss, but has to pay at least the statutory minimum bonus of 8.33%.
If the declared bonus is above 8.33%, then that should be paid to left employees as well. This is because, bonus within the limits of Payment of Bonus act, is considered as deferred wages.
Regards,
Madhu.T.K
From India, Kannur
If the declared bonus is above 8.33%, then that should be paid to left employees as well. This is because, bonus within the limits of Payment of Bonus act, is considered as deferred wages.
Regards,
Madhu.T.K
From India, Kannur
Dear Bhanu,
As per the provisions of the Payment of Bonus Act, Bonus payments need to be done after the finalization of the balance sheet of the company. You will agree with me that no company makes balance sheet on monthly basis. Hence the computation of allocable surplus can not be done as provided in the Act and accordingly no question for provide monthly bonus.
Regards,
Raj Kumar Rai
From Australia
As per the provisions of the Payment of Bonus Act, Bonus payments need to be done after the finalization of the balance sheet of the company. You will agree with me that no company makes balance sheet on monthly basis. Hence the computation of allocable surplus can not be done as provided in the Act and accordingly no question for provide monthly bonus.
Regards,
Raj Kumar Rai
From Australia
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