Hi,
Can we pay statutory bonus on a monthly basis at 8.33% of Basic + DA subject to a limit of Rs. 3,500/- per annum? Also, please confirm whether ESIC is applicable on the statutory bonus if paid on a monthly basis.
Regards,
Sunil Kumar
From India, Bangalore
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Can we pay statutory bonus on a monthly basis at 8.33% of Basic + DA subject to a limit of Rs. 3,500/- per annum? Also, please confirm whether ESIC is applicable on the statutory bonus if paid on a monthly basis.
Regards,
Sunil Kumar
From India, Bangalore
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If you pay a bonus monthly (though it cannot become a statutory bonus since the bonus as per the Payment of Bonus Act is to be paid within eight months of the close of the financial year), it will attract ESI. This is because any payment made to employees in an interval of not more than two months shall be treated as part of the salary for the purpose of ESI.
Madhu.T.K
From India, Kannur
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4490Madhu.T.K
From India, Kannur
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Paying statutory bonus on a monthly basis falls under earnings and is applicable when gross earnings are less than or equal to INR 15000 per month, making ESIC applicable.
I have noticed in the contract security guard's salary slip that during Diwali (financial year eight months), they do not receive this statutory bonus, even though it should be paid after being paid on a monthly basis.
From India, Ahmadabad
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I have noticed in the contract security guard's salary slip that during Diwali (financial year eight months), they do not receive this statutory bonus, even though it should be paid after being paid on a monthly basis.
From India, Ahmadabad
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