Dear Professionals. Is PF to be calculated on statutory bonus that we are paying monthly? And what components are excluded from PF calculation in CTC? Thank You,
From India, Ahmedabad
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1From India, Ahmedabad
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Hi, Bonus to be paid on annual basis. While it is ok to add it in the CTC part no need to consider it for PF calculation.
From India, Madras
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From India, Madras
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Dear Lakshmi Narayanan sir, Is it possible to pay bonus monthly instead of annually?
From India, Ahmedabad
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From India, Ahmedabad
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Payment of Bonuses
Payment of bonuses is to be made within eight months of the close of the financial year. As such, you cannot distribute it over 12 months. When you pay it monthly, the amount will attract ESI in the case of those covered under ESI.
From India, Kannur
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Payment of bonuses is to be made within eight months of the close of the financial year. As such, you cannot distribute it over 12 months. When you pay it monthly, the amount will attract ESI in the case of those covered under ESI.
From India, Kannur
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When it comes to the matter of statutory bonus, please follow the rules as per the act (as better explained by Madhu Sir) because initially, how can you decide the allocable surplus and percentage of bonus? However, if you still want to include it in the cost center, ESIC will be applicable on these amounts.
From India, Rudarpur
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From India, Rudarpur
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Amendment to Payment of Bonus Act 2015.jpg
Online payment of PF mandatory from 1.1.2016.pdf