rahul@cartiniindia.com
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
Kumaran Praveen
104

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
saswatabanerjee
2383

No. It is not allowed.
Bonus can be paid only once a year, which is after preparation of form A and B. And to be paid within 8 months of end of the financial year.
You are allowed to set off customary bonus, but that too is set off of one customers bonus. It needs to be customary for the industry or the company. Monthly payment is not customary bonus.
Any money paid monthly is a part of wages and salary, so if bonus paid monthly, then it's no longer bonus but a part of gross wages. So you will be required by law to pay it again

From India, Mumbai
Adoni Suguresh
150

Mr.Rahul,
I agree with Mr.Banerjee. The Bonus payment to be paid once in a year after company"s accouts finalized for tax computation. Payment of Bonus shall be kept in provisional in balance sheet as payable. Form A and Form B ie set off and allocable surplus etc to be maintained. Payment of bonus on mon thly basis does not fall within the purview of the Payment of Bonus Act.
Adoni Suguresh
Labour Laws Consultant

From India, Bidar
saswatabanerjee
2383

I would disagree.
Even if the profit is enough to pay minimum bonus, the fact that you have paid bonus monthly would make that payment a part of wages and salaries. The company will be liable to pay bonus again at the end of the year / 8 months from end of the year.

From India, Mumbai
sanjay.singhania282@gmail.com
1

Dear Mr. Rahul,
As per Bonus Act 1965 Bonus paid once in an year because bonus is not part of wages & salary . The Employers paid bonus to their profit .
and Employer will not be liable to paid bonus in beginning of company.

From India, Hyderabad
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.