Hi Geet-chopadekar, Your query appeared in this link - https://www.citehr.com/609091-please...ml#post2418079 "We want to set new policies in our company which will be applicable from April 2019. Please elaborate on Diwali bonus & privilege leave eligibility for salary below 21000 & above."
Company Details
Tell us about your company, the number of employees, and what Act is applicable to your firm.
Employee Composition
25 skilled employees & 10 unskilled employees
Legal Compliance for Factories
If yours is a factory registered under the Factories Act, you have to adhere to the stipulations of both the Factories Act & the Payment of Bonus Act.
Understanding the Diwali Bonus
As per the Payment of Bonus Act, there is no 'Diwali' bonus, but the bonus is payable to all eligible employees within 6 months of the closure of accounts, i.e., 31st March, which coincides with the 'Diwali' season. Most states in the central & northern parts of the country traditionally open a new year's account on 'Diwali day,' whether in October or November, hence it is generally called the Diwali bonus. Legally, it's a 'statutory annual bonus.' It's a minimum of 8.33% of total wages or a maximum of 20%. There is also another statutory formula provided in the Act as 'allocable surplus,' which you have to follow.
Privilege Leave Rules
Regulations regarding privilege leave rules published by the state government, as may be applicable, have to be followed.
If you need further clarification on this, please continue this thread.
From India, Bangalore
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1159Company Details
Tell us about your company, the number of employees, and what Act is applicable to your firm.
Employee Composition
25 skilled employees & 10 unskilled employees
Legal Compliance for Factories
If yours is a factory registered under the Factories Act, you have to adhere to the stipulations of both the Factories Act & the Payment of Bonus Act.
Understanding the Diwali Bonus
As per the Payment of Bonus Act, there is no 'Diwali' bonus, but the bonus is payable to all eligible employees within 6 months of the closure of accounts, i.e., 31st March, which coincides with the 'Diwali' season. Most states in the central & northern parts of the country traditionally open a new year's account on 'Diwali day,' whether in October or November, hence it is generally called the Diwali bonus. Legally, it's a 'statutory annual bonus.' It's a minimum of 8.33% of total wages or a maximum of 20%. There is also another statutory formula provided in the Act as 'allocable surplus,' which you have to follow.
Privilege Leave Rules
Regulations regarding privilege leave rules published by the state government, as may be applicable, have to be followed.
If you need further clarification on this, please continue this thread.
From India, Bangalore
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Statutory Bonus and Leave Regulations
The statutory bonus is to be paid within 8 months of the closure of accounts as per the Payment of Bonus Act/Wage Code. Leave (Privilege/Annual) should be either as per the Factories Act or the Shops and Establishments Act of the state, depending on the coverage of the establishment or factory.
S K Bandyopadhyay (Howrah, WB)
[Email Removed For Privacy Reasons]
From India, New Delhi
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The statutory bonus is to be paid within 8 months of the closure of accounts as per the Payment of Bonus Act/Wage Code. Leave (Privilege/Annual) should be either as per the Factories Act or the Shops and Establishments Act of the state, depending on the coverage of the establishment or factory.
S K Bandyopadhyay (Howrah, WB)
[Email Removed For Privacy Reasons]
From India, New Delhi
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