Can Employer Pay Bonus to EMployee in Two Parts like 50% as a Bonus & 50% in PF Account???
From India, Vadodara

Get Dual Certificates from IIM Shillong and SHRM →
Promoted: IIM Shillong - PG Certification in Human Resource Management (Explore Course)

PF & Bonus are statutory. You need to contribute towards PF in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 and you need to make payment of minimum statutory Bonus, in accordance with Payment of Bonus Act
From India, Aizawl
Thank you for Reply but still i have one confusion.... We paid as an employer minimum amount as a bonus and rather than that amount can we pay bonus amount in PF account????
From India, Vadodara

You can pay even 20% as Bonus payment depending upon the profit of company (or more but terminology used is "ex-gratia" instead of bonus).

But 8.33% as statutory minimum bonus.

In Provident fund, contributions are deposited based on the wages/salary earned by

the employee. However, as per Income Tax Act, Bonus is part of salary in the hands of employee

and taxable also.

'As per the provision of the Income Tax Act, 1961, the amount of compensation due or received by an employee from his employer in connection with an employment shall be taxable as salary in the hands of the employee. Accordingly, the bonus receivable by you shall be taxable in your hands as salary income'

Contributions towards PF shall be made on the basis of the monthly wages/salaries of employees.

You can not increase employers' contribution towards PF just for a month.

From India, Aizawl

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHR.Comô

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server