Can we give statutory bonus monthly. If yes, what would be percentage and procedure?

Can we give statutory bonus monthly? If yes, what would be the percentage, and what is the procedure? If no, explain in detail to educate my team members.

Statutory bonus payable under the Payment of Bonus Act is based on profitability and is determined through set on and set off procedures as outlined in the act. This bonus is paid once a year after the balance sheet is prepared.

Hi Babu,

Most companies pay it as a monthly component, which is why I want to know more about it as it will reduce a lot of manual work.

Regards,
Sampathkumar S

Percentage of bonus can be calculated once the balance sheet is prepared, depending upon the available surplus arrived at on a set-off formula. As suggested by the learned colleague above, bonuses are paid within 8 months after the completion of the balance sheet. Yes, you are right, many companies pay a bonus at 20% from the beginning of the company, and it is paid during the infancy period as a part of CTC. Accordingly, you can also pay a bonus (which would be called an ex gratia payment).

R R Kapoor Vadodara