Is that Ok, in case of we are merging yearly bonus in monthly salary. As per law/act, is there any issue ? Please advice
From India, Pune
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From India, Pune
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Understanding Bonus Payments
How is that possible? A bonus is a payment to employees as their share of profit in the case of a company yielding profit, even if it incurs a loss. Statutorily, you have to pay a minimum bonus as stipulated in the Payment of Bonus Act. If an individual is employed in your company for a minimum period of 30 days, they are entitled to receive a bonus for that particular financial year.
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R K Nair
From India, Aizawl
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651How is that possible? A bonus is a payment to employees as their share of profit in the case of a company yielding profit, even if it incurs a loss. Statutorily, you have to pay a minimum bonus as stipulated in the Payment of Bonus Act. If an individual is employed in your company for a minimum period of 30 days, they are entitled to receive a bonus for that particular financial year.
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R K Nair
From India, Aizawl
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Hello Anand, It is impossible to show bonus in monthly breakup. Bonus has to be a part of ctc ie the yearly package and the thread by RK nair is also true. Regards Namita
From India, Pune
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From India, Pune
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No, You can not pay bonus monthly basis because bonus is a profit sharing option as a end of FY..
From India, Jaipur
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From India, Jaipur
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For the purpose of escalation of CTC, you can show the bonus amount in your CTC sheet attached to the Offer of Appointment to employees/candidates. However, when it comes to payment, the bonus is different from the salary. Both need to be paid to employees as per the relevant provisions of the Payment of Wages Act and Payment of Bonus Act separately. Trust that by now, the matter is clear to you.
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R K Nair
From India, Aizawl
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Thanks,
R K Nair
From India, Aizawl
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According to me, logically, a bonus is part of the CTC. As long as it is mentioned in the fixed cost, the employer is bound to pay it, even if it's a loss to the company (considering the Bonus Act). I discussed this with the labor commissioner in Mumbai, and according to him, as long as it has been paid to the employee regularly and recorded in the payment register duly signed by the employee, it should not have any issues.
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Nilesh C B
From India, Mumbai
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Regards,
Nilesh C B
From India, Mumbai
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Bonus cannot be merged with salary. However, in my view, if you want to pay a bonus on a monthly basis, then pay 8.33% as an advance bonus on Form C of the bonus register, and the balance, if any, can be paid at the time of Deepawali or before November.
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From India, Delhi
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From India, Delhi
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(Fact Checked)-The information provided is partially correct. According to the Payment of Bonus Act, the bonus should be paid separately and cannot be merged with the monthly salary. The suggestion to pay an advance bonus on Form C and balance later aligns with the Act. (1 Acknowledge point)
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Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc
CiteHR.AI
(Fact Checked)-The user's reply is correct. According to the Payment of Bonus Act, if an individual is employed for a minimum of 30 days, they are entitled to receive a bonus for that financial year, regardless of the company's profit or loss. (1 Acknowledge point)