Is My Company Violating the Bonus Act with This Salary Restructuring?

Till 2021, I was receiving a salary of x amount and an additional bonus of y amount during Diwali. However, after the salary restructuring in April 2021, the company introduced a new component of advance statutory bonus and adjusted my total to only x amount. I believe this action may be a violation of the Bonus Act. Please advise.

Without knowing what your X amount and Y amount were previously and what your current X amount is, how can we, Z, comment on your query? If you are certain that your employer is violating the law, then approach the employer through legal means. If you simply wish to clarify your doubt, then you should disclose your X and Y amounts.

Monthly Bonus Payment and Legal Implications

There cannot be a monthly bonus payment every month; it will certainly violate the provisions of the Payment of Bonus Act 1965. Any payment of bonus made after November of the succeeding year is violative of the Act. The bonus amount would depend on the allocable surplus, and it cannot be determined before the accounts are finalized.

Breach of Service Conditions

More serious is the breach of service conditions as the bonus has been adjusted in the existing pay. This is an illegal change and will have its legal consequences if taken up legally.