Can we give statutory bonus monthly. If yes, what would be % and what is the procedure? If no, explain in details to educate my team members.
From India, Chennai
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6From India, Chennai
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Statutory bonus payable under the Payment of Bonus Act is based on profitability and is determined through set on and set off procedures as outlined in the act. This bonus is paid once a year after the balance sheet is prepared.
From India, Madras
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From India, Madras
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Hi Babu, Most of the companies are paying it as monthly component which is why I wanna know about as it will reduce lot of manual work. Regards Sampathkumar S
From India, Chennai
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From India, Chennai
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Percentage of bonus can be calculated once the balance sheet is prepared, depending upon the available surplus arrived at on a set-off formula. As suggested by the learned colleague above, bonuses are paid within 8 months after the completion of the balance sheet. Yes, you are right, many companies pay a bonus at 20% from the beginning of the company, and it is paid during the infancy period as a part of CTC. Accordingly, you can also pay a bonus (which would be called an ex gratia payment).
R R Kapoor Vadodara
From India, Vadodara
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R R Kapoor Vadodara
From India, Vadodara
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Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc