It is a fact that other than few organized sectors, MNCs etc , most of the Indian organizations are not following Bonus Act in totality. Most of the organizations are paying 8.33% as minimum bonus irrespective of profit or loss. Some organizations are paying ex-gratia other than bonus.
If we are interested to follow the Bonus Act in totality, it will be required to determine % of bonus based on the basis of Gross profit of the P & L Account of any particular financial year , available surplus, allocable surplus, Set On & Set Off.
After determining the % of bonus, the statutory bonus to be paid within 8 months of completion of financial year in one go, not on any other method. If we follow any other method it will be illegal or customary bonus.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in