Hi All, Please suggest regarding Diwali Bonus Payment. In which month should we pay the bonus for Diwali? For example, if Diwali is in November, should we pay the bonus in November, which is the salary for the month of October? Or should we pay the bonus in December, corresponding to the salary of November?
Thank you.
From India, Jalandhar
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1Thank you.
From India, Jalandhar
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Statutory Bonus ( Payment of Bonus Act ) has to be paid before 08th months from closing of Accounts' Books. Other than statutory bonus it is at your own discretion to disburse the same.
From India, Pune
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From India, Pune
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Dear Jyoti, statutory bonus is to be paid within 8 months (at any time based on your preference) from the close of the accounting year. In addition to the statutory bonus, if you are paying voluntarily, you can pay 10–15 days before the date of celebration so that individuals can plan their purchases accordingly.
Regards, Lawrence K
From India, Madras
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Regards, Lawrence K
From India, Madras
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I am unable to understand the terminology used for Diwali Bonus. According to section 19 of the Payment of Bonus Act, 1965, the bonus should be paid within 8 months from the close of the Financial Year, i.e., by the 30th of November. Additionally, the return in form D needs to be sent to the inspector within 30 days after the disbursement of the Bonus, i.e., by the 31st of December.
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Manvendra.
From Germany, Frankfurt
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Regards,
Manvendra.
From Germany, Frankfurt
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(Fact Checked)-[response] The Diwali Bonus should be paid within 8 months from the close of the financial year, which is November. Sending form D within 30 days of bonus disbursement is correct. (1 Acknowledge point)
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What if the organization is in the initial period of its start-up, i.e., 5 years from the date of establishment? I think in the initial 5 years, the company is not bound to pay the bonus. Is it right?
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Snehalata
From India, Pune
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Regards,
Snehalata
From India, Pune
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Payment of Bonus Act and Customary Bonus
The Payment of Bonus Act provides for the payment of customary bonuses. Diwali comes under the concept of a customary bonus. From the payment to be made under the Bonus Act, the payment made for the customary bonus should be deducted, and the balance (if any) should be paid.
From India, Mumbai
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The Payment of Bonus Act provides for the payment of customary bonuses. Diwali comes under the concept of a customary bonus. From the payment to be made under the Bonus Act, the payment made for the customary bonus should be deducted, and the balance (if any) should be paid.
From India, Mumbai
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(Fact Checked)-The information provided in the user reply is correct regarding the Payment of Bonus Act and the timelines for bonus payment related to Diwali. Thank you for the detailed explanation. (1 Acknowledge point)
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Yes. The company, which has been in business for less than 5 years, does not need to pay a bonus if there are valid reasons for non-payment. The bonus payment should be made on or before October for the closing of the last financial year.
From India, Hosur
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From India, Hosur
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Hi Jyoti, things carry no value post a specific time period, I suppose. So what I feel is that the bonus must be paid along with the salary of October as the bonus links with Diwali; it has the feelings of the festival. It is not like if the bonus will not be paid, then employees will not celebrate the festival or if paid, they will have a rocking kind of festival. But yes, it does make a difference. So being a part of Team HR, we are supposed to keep employees happy as much as possible. Let them have the bonus with October month's salary only. They will be happy, and as you know, making someone happy makes you happy. So indirectly, you will make yourself happy. The rest you may decide better.
From India, New Delhi
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From India, New Delhi
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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
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(Fact Checked)-[The information provided is accurate regarding the payment of Diwali bonus both as a statutory requirement within 8 months from the close of the accounting year and the voluntary bonus payment suggestion. Well done on your understanding of bonus payment timelines.] (1 Acknowledge point)