New to HR: Is an Employee Eligible for a Bonus After Just 30 Days?

Dear Seniors, I am very new to HR and have a doubt regarding the eligibility for the Payment of Bonus. As per the Payment of Bonus Act 1965, if an employee has worked in an organization for thirty days in an accounting year, he/she will be eligible for the payment of a bonus. In this connection, if an employee joined in April and resigned in June, he/she would be eligible. Therefore, we would need to pay the bonus to that particular employee. Am I right? If I am wrong, please correct me by providing your valuable comments. Thanks in advance for your great help.

Dear Atul,

As per the Payment of Bonus Act 1965, an employee will be eligible for a bonus after 30 days from his date of joining.

Regards,
Atul

Bonus becomes payable only after its determination at the close of the relevant accounting year. Therefore, if an employee leaves the establishment in the middle of the accounting year, it is not necessary that proportionate bonus has to be paid along with Full and Final Settlement.

Hi,

You are right. The guidelines of the Payment of Bonus Act are as follows:

1) Eligibility: The employee should have worked for 30 days in a year.
2) Applicability: From the 6th accounting year of the company from the date of commencement OR From the 1st Profit Making Year of the Company.
3) Payable: when BASIC + DA < or = Rs. 10,000

If all the above are met, then you have to bonus even if the employee has worked only 32 days.

Regards, Priya

Dear Sir (Umakanth),

Thank you for your support. With due respect, if you can provide any documentary material, notification, or section of the act, it would be a great help to us. If possible, please extend your best support to us.

Thanks,
Yuva