Can Former Employees Claim Additional Bonus After Leaving Mid-Year? Seeking Advice on Legal Obligations

Hi, I want to know if some employees left their service before the completion of the financial year and they have taken their bonus at 8.33%. However, after the completion of the financial year, the company distributed the bonus at 20%. Should the employer mention the left employees on the Form C (bonus register) for the rest of the bonus (20%-8.33%) or ignore them? Can employees claim the remaining bonus amount? What is the act in this regard? Please reply as soon as possible.

Left employees should be paid the remaining (20%-8.33%) bonus, and Form C must contain details of all employees who are eligible or have received the bonus.

Regards,
Kamal Prasoon Sinha.

Bonus Payment Guidelines

Minimum - 8.33%
Maximum - 20% (but employers can pay more; there is no restriction if an employer wants to give better benefits to its employees).

The Payment of Bonus Act amendment bill to increase the statutory minimum percentage (from 8.33% to 11%) of bonus and the wage ceiling to 5000/- is yet to be passed by Parliament.

Regards,
Kamal Prasoon Sinha

Good evening everybody, it's nice to be part of such a huge network of HR and administrative mentors. I want to know if an employee's salary is 8500 per month, and his annual (from 1-Apr to 31-Mar) earning is more than Rs. 95000, and we distribute the bonus at 20% on Form C (Bonus Register). Then how much should we give him as a bonus, although the maximum bonus amount is Rs. 8400/- as per the Payment of Bonus Act?

If we give an employee more than Rs. 8400/- (e.g., 15000/-), is this non-compliance with the Bonus Act? Can we give?

Please reply as soon as possible.

Thanks and best regards.

I have already mentioned that there is no restriction if an employer wants to give better benefits to its employees. It will not be against the compliance of the Payment of Bonus Act. Even if eligibility is for Rs 8400/-, the employer can pay more than that.