Hi All, I work with contact labor for a logistics firm. Regarding the same need to understand if I can disburse Statutory Bonus on monthly basis, and is that compliant as per the law?
From Hong Kong, Central
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From Hong Kong, Central
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No. The bonus, as per the provisions of the Payment of Bonus Act, is payable within 8 months of the close of the books of accounts. The payment has to be made in one go and in a single payment. If you pay the minimum statutory bonus, it is 8.33% of wages earned in that financial year, restricted to ₹7000 or upon the minimum wages of that scheduled employment, whichever is higher.
The bonus payment has to be made one time in a year, which is statutory. Monthly payments (as you mentioned) will not meet the statutory compliance.
Take care,
Regards, Dr. P. Sivakumar
From India, Chennai
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321The bonus payment has to be made one time in a year, which is statutory. Monthly payments (as you mentioned) will not meet the statutory compliance.
Take care,
Regards, Dr. P. Sivakumar
From India, Chennai
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Amendment to Payment of Bonus Act 2015.jpg
Statutory Compliance of a Industrial or Commercial Unit.xls
Statutory-compl iance.pdf