aditya-krishnatrayIf we give a bonus along with salary to an employee every month, then in this situation bonus will be added to the contribution of ESIC or not ??
If We Will Add Bonus In The ESIC Contribution, What Will Be Effect On Statutory Compliances ??
If We Will Not Add Bonus In The ESIC Contribution, What Will Be Effect On Statutory Compliances ??
How We Can Fulfill Bonus compliance in a good way.
From India, Noida
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Labour Law & Hr Consultant
Ceo-usd Hr Solutions
Bonus is a payment based on the performance of the establishment during the accounting year and hence it can be ascertained only after balancing the accounts after the close of the year. Therefore, it is not possible for tentatively arriving at the quantum of bonus so as to pay in equated monthly instalments before hand.
Alternatively, you may consider paying monthly bonus advance @ equalent to minimum bonus so that to avoid it's inclusion to monthly payments to ESI and EPF.
The advance payments can be adjusted later against bonus that would be determined at the end of the year.
From India, Salem
aditya-krishnatrayThanks Sir, Thanks For Your Valuable View @Umakanthan
From India, Noida
nanu1953It is always better to pay Statutory Bonus at the end of the accounting year based on performance of the Organization. If any organization is interested to pay it monthly basis, it must be booked at books of account as an advance not as normal payment . If it is a normal payment , then it will attract ESI as any payment maximum at an interval of 2 months is consider for ESI.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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From India, New Delhi