Mr.Madhu,
I think what Saunee wants to know is the effect of not only the reflection of statutory bonus as a monthly component but also its actual proportionate monthly disbursement along with the regular salary during the entire accounting year. Bonus under the Payment of Bonus Act,1965 is determined on the basis of the performance of the industrial establishment in the accounting year and is calculated as a percentage of the total earnings of the eligible employees in that accounting year. Though monthly payment of bonus may be based on mere guess work, personally I don't think it is either inappropriate or legally incorrect. It can be termed either as interim bonus or bonus advance adjustable later against the bonus determined and paid after the close of the accounting year. It may reduce the burden of one-time- bulk payment in respect of the employer for he is bound to pay the minimum bonus even in case of losses and add up to the monthly earnings of the employees. However, such a practice may be convenient if there is a subsisting settlement, either bilateral or tripartite, enabling the predetermination of annual bonus strictly as per the provisions of the Act regarding minimum bonus or maximum bonus based on the performance only during its currency. I also would like to add that it may be a tactical move of the employer to gain an edge in the collective bargaining process of wage revision or to avoid the hassle of annual demand for bonus. It depends on so many positive factors like confidence of the employer regarding the stability and profitability of his operations, strict compliance of the provisions of set on and set off and above all the employer's commitment to his promise despite the odds of unexpected business reverses if any, beyond his control. At the same time, I also would like to add that the amount of bonus paid monthly along with the salary or wage can not be a component of the wage or salary structure other than for the purpose of CTC.