Dear Team, Is it ok to pay bonus amount on monthly basis instead of paying it on yearly basis. Is it legal Rahul.
From India, Verna
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From India, Verna
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Hi Mr.Raghul, If it is agreed mutually between management and employees than you can pay bonus monthly. With Regards Mr.Thumbs Up
From India, Chennai
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115From India, Chennai
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No, it is not allowed.
Bonus can be paid only once a year, which is after the preparation of Form A and B, and it should be paid within 8 months of the end of the financial year.
You are allowed to set off a customary bonus, but that too is a set off of one customer's bonus. It needs to be customary for the industry or the company. Monthly payment is not considered a customary bonus.
Any money paid monthly is a part of wages and salary. Therefore, if a bonus is paid monthly, then it is no longer a bonus but a part of gross wages. You will be required by law to pay it again.
From India, Mumbai
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Bonus can be paid only once a year, which is after the preparation of Form A and B, and it should be paid within 8 months of the end of the financial year.
You are allowed to set off a customary bonus, but that too is a set off of one customer's bonus. It needs to be customary for the industry or the company. Monthly payment is not considered a customary bonus.
Any money paid monthly is a part of wages and salary. Therefore, if a bonus is paid monthly, then it is no longer a bonus but a part of gross wages. You will be required by law to pay it again.
From India, Mumbai
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Mr. Rahul,
I agree with Mr. Banerjee. The bonus payment is to be paid once a year after the company's accounts are finalized for tax computation. Payment of bonus shall be kept provisional on the balance sheet as payable. Form A and Form B, i.e., set off and allocable surplus, etc., are to be maintained. Payment of bonus on a monthly basis does not fall within the purview of the Payment of Bonus Act.
Adoni Suguresh Labour Laws Consultant
From India, Bidar
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I agree with Mr. Banerjee. The bonus payment is to be paid once a year after the company's accounts are finalized for tax computation. Payment of bonus shall be kept provisional on the balance sheet as payable. Form A and Form B, i.e., set off and allocable surplus, etc., are to be maintained. Payment of bonus on a monthly basis does not fall within the purview of the Payment of Bonus Act.
Adoni Suguresh Labour Laws Consultant
From India, Bidar
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I would disagree. Even if the profit is enough to pay the minimum bonus, the fact that you have paid a bonus monthly would make that payment a part of wages and salaries. The company will be liable to pay a bonus again at the end of the year/8 months from the end of the year.
From India, Mumbai
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From India, Mumbai
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Dear Mr. Rahul,
According to the Bonus Act of 1965, bonuses are paid once a year because bonuses are not considered part of wages and salary. Employers pay bonuses from their profits, and they are not obligated to pay bonuses at the beginning of the company.
From India, Hyderabad
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According to the Bonus Act of 1965, bonuses are paid once a year because bonuses are not considered part of wages and salary. Employers pay bonuses from their profits, and they are not obligated to pay bonuses at the beginning of the company.
From India, Hyderabad
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Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
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