Bonus Policy For IT Companies

Hello Team,
Myself Mohana working as a HR in a startup company. I need to introduce bonus policy in my company and i'm new to Labor Laws. It would be great if anyone can throw some light on different bonus policies followed by IT Software Development & Services companies in India (Kerala).

Hi Mohana
As per the latest bonus act company has to pay minimum bonus of 7000/- or the minimum wages pertaining to your region which ever is high.

Hello Jeevarathnam, Thanks for the information. Are you talking about yearly bonus! i want to know if we are planning to give performance bonus then is it compulsory to give yearly bonus?

No. Other than the Statutory bonus there is no any performance bonus related to the statutory. It is left to the company discretion and company policy.
Many companies follow Performance Bonus to motivate the employee to improve the productivity
If need any assistance you can reach me

Bonus Act is applicable to any factory or establishment wherein 20 or more workers are employed. In startup company also if profits are there, they have to pay Bonus from the first year of establishment.
Introduction of new Bonus Policy is not necessary. You can go as per Act.