AddybhatHi All, I work with contact labour for a logistics firm. Regarding the sma,e need to understand if I can disburse Statutory Bonus on monthly basis, and is that compliant as per the law? Regards Aditi
From Hong Kong, Central
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Doctor Siva Global Hr
No. The Bonus as per the Provisions of Payment of Bonus Act is payable within 8 months of close of books of accounts. The payment has to go in one go and in one single payment. If you pay minimum Statutory Bonus it is 8.33% of wages earned in that Financial Year restricted to 7000/- or Upon Minimum Wages of that scheduled employment whichever is higher.
They Bonus payment has to be made one time in a year which is statutory. Monthly payment ( as you mentioned) will not meet the Statutory Compliance
Doctor Siva Global HR
From India, Chennai