Can I Legally Pay Statutory Bonuses Monthly to Contract Workers in Logistics?

Addybhat
Hi all, I work with contract labor for a logistics firm. I need to understand if I can disburse the Statutory Bonus on a monthly basis and if this is compliant with the law. Thank you.
drsivaglobalhr
No. The bonus, as per the provisions of the Payment of Bonus Act, is payable within 8 months of the close of the books of accounts. The payment has to be made in one go and in a single payment. If you pay the minimum statutory bonus, it is 8.33% of wages earned in that financial year, restricted to ₹7000 or upon the minimum wages of that scheduled employment, whichever is higher.

The bonus payment has to be made one time in a year, which is statutory. Monthly payments (as you mentioned) will not meet the statutory compliance.

Take care,

Regards, Dr. P. Sivakumar
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