Can we add bonus component split up on a monthly basis? Or should we give yearly consolidated at the end of the year?
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Bonus is an additional remuneration payable to the employees based on the performance of the establishment in an Accounting Year subject to the scales prescribed under the Payment of Bonus Act,1965. In addition, the determination of the quantum of bonus is legally a subject matter of collective bargaining. Therefore, monthly payment of bonus based on presumption can not be a sound practice though there is no explicit statutory bar on such practice. To be on the safer side an amount equal to minimum bonus can be monthly paid as bonus advance and adjusted later against the actual quantum determined at the close of the Accounting Year.
From India, Salem
From India, Salem
Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
Bonus-amendment _206.doc
