Hello Friends,
I would like to know if, in the case where a company has more than 20 employees but their salary is less than 10K, statutory bonus is not applicable. However, if the company pays voluntarily, is it mandatory to comply with various statutory returns (e.g., annual returns)? If yes, why?
Thanks in advance
From India, Bangalore
Acknowledge(0)
Amend(0)
I would like to know if, in the case where a company has more than 20 employees but their salary is less than 10K, statutory bonus is not applicable. However, if the company pays voluntarily, is it mandatory to comply with various statutory returns (e.g., annual returns)? If yes, why?
Thanks in advance
From India, Bangalore
Acknowledge(0)Amend(0)
If you employ 20 employees, then you are expected to give bonuses to employees as per the Payment of Bonus Act. If none of the employees qualifies for a bonus due to all employees receiving a salary of more than Rs 10,000, you need not pay a bonus but you have to file a nil return.
If you pay a bonus voluntarily, you may still file returns as prescribed under the Act. Payment of a bonus cannot be deemed a voluntary act on the part of the employer but should be the outcome of a settlement between employees and the employer. Moreover, the ceiling that determines whether an employee is eligible for a bonus or not is subject to change. Therefore, an employee who is presently out of coverage may become eligible later on.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
4612If you pay a bonus voluntarily, you may still file returns as prescribed under the Act. Payment of a bonus cannot be deemed a voluntary act on the part of the employer but should be the outcome of a settlement between employees and the employer. Moreover, the ceiling that determines whether an employee is eligible for a bonus or not is subject to change. Therefore, an employee who is presently out of coverage may become eligible later on.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
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