The annual bonus is part of our CTC component and is usually paid in the next calendar year, probably by April or May. However, there is no fixed date when it will be paid. This year, it has been delayed, and we haven't yet received our annual bonus for 2015. Additionally, management has introduced a new policy that requires an employee to be on active payroll (meaning employees should not be on notice period, absconding, or terminated) effective from August 1st, 2016.
So, my question is: Is it legally valid and applicable to the annual bonus for 2015? In other words, if I resign now, will I not be entitled to the annual bonus for 2015? Factors considered for paying the annual bonus include individual performance, company performance, industry performance, and management's decision. Now, being on active payroll is also added to these considerations.
Thank you for your help.
From India, Pune
So, my question is: Is it legally valid and applicable to the annual bonus for 2015? In other words, if I resign now, will I not be entitled to the annual bonus for 2015? Factors considered for paying the annual bonus include individual performance, company performance, industry performance, and management's decision. Now, being on active payroll is also added to these considerations.
Thank you for your help.
From India, Pune
Hi Latish,
Most companies will have a rule stating that an employee should not be on notice period to receive the annual bonus. Absconding and termination are ruled out cases. For the payout date, check with your HR department for more clarification.
From India, Bangalore
Most companies will have a rule stating that an employee should not be on notice period to receive the annual bonus. Absconding and termination are ruled out cases. For the payout date, check with your HR department for more clarification.
From India, Bangalore
Hello Mahesh,
Thank you for replying. I understand most companies have such a policy. However, my question is: can a company introduce a policy for previous year's bonus in the current year, and can it stand legally valid?
Thank you.
From India, Pune
Thank you for replying. I understand most companies have such a policy. However, my question is: can a company introduce a policy for previous year's bonus in the current year, and can it stand legally valid?
Thank you.
From India, Pune
Irrespective of whether an employee is active or inactive, if they have worked 30 days or more in any accounting year, they are entitled to a bonus under Section 8. However, the bonus should be paid within 8 months after the completion of the accounting year under Section 20(b). Therefore, the disbursement of the previous year's bonus in the current year cannot be the company's policy. If the company has not disbursed the previous year's bonus, they need to release it immediately to all eligible employees and record the same in the register Form C. Also, it is subject to punishment/penalty as defined in Section 28 of the Bonus Act.
Regards, Devesh Chauhan
From India, Basti
Regards, Devesh Chauhan
From India, Basti
Let us get the basics clear. If you are talking about the Statutory Bonus, then statute overrides the company's policies. For being eligible for the statutory bonus:
1. You should have worked for 30 days or more in the previous financial year.
2. Your Basic + DA should be equal to or less than 21,000/- per month.
If you satisfy the above two conditions, you will be entitled to the statutory bonus irrespective of your being in the service of the company on the date of disbursement of the Statutory Bonus.
However, if you are discussing a Bonus Scheme of the company that is over and above the statutory requirements, the company reserves the right to amend, modify, suspend, or withdraw any such scheme as it deems fit.
Hope this helps.
Regards
From India, Mumbai
1. You should have worked for 30 days or more in the previous financial year.
2. Your Basic + DA should be equal to or less than 21,000/- per month.
If you satisfy the above two conditions, you will be entitled to the statutory bonus irrespective of your being in the service of the company on the date of disbursement of the Statutory Bonus.
However, if you are discussing a Bonus Scheme of the company that is over and above the statutory requirements, the company reserves the right to amend, modify, suspend, or withdraw any such scheme as it deems fit.
Hope this helps.
Regards
From India, Mumbai
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