Can Companies Legally Include Bonuses in Monthly Salary Payments? Seeking Clarification

In one of my friend's companies, the salary breakup includes a bonus as part of the salary. However, based on my knowledge, a bonus cannot be paid on a monthly basis. According to the act, it has to be paid within 8 months as a one-time payment.

Question on Bonus Payment Structure

Now, the question is: Does any organization have the right to include a bonus as part of the salary and pay it on a monthly basis? Additionally, is there any notification issued by the government regarding this matter? If such notifications exist, please share them with me via email at [Email Removed For Privacy Reasons].

I would appreciate your response.

I agree with Mr. Negi, but I have a slightly different opinion regarding the payment of monthly bonuses. As Mr. Negi has rightly mentioned, nowhere in the act is it written that it cannot be paid on a monthly basis. It can be paid on a monthly basis using Form C, as there is a provision for advance bonuses in Form C of the bonus register. As Mr. Negi has said, it will be decided after finalizing the balance sheet; then the remaining bonus can be paid after 8 months.

Salary Breakup and Bonus Payment

In one of my friend's companies, the salary breakup includes a bonus as part of the salary. However, based on my knowledge, a bonus cannot be paid on a monthly basis and, as per regulations, it must be paid within 8 months as a one-time payment.

Now, the question is, does any organization have the right to include a bonus as part of the salary and pay it on a monthly basis? Secondly, has the government issued any notifications regarding this matter? If so, please share them with me via email at [Email Removed For Privacy Reasons].

You are right that the bonus is payable within 8 months. Additionally, in my opinion, the term 'bonus' when paid on a monthly basis should be considered as an 'incentive.'

Thanks & Regards,

Sumit Kumar Saxena