Can we add bonus component split up on a monthly basis? Or should we give yearly consolidated at the end of the year?
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Bonus should be a lump sum payment to my mind paid on annual basis as laid down in Payment of Bonus Act. Splitting it up and paying bonus on monthly instalments may not be in order.
From India, Pune
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3180From India, Pune
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Bonus is an additional remuneration payable to the employees based on the performance of the establishment in an Accounting Year, subject to the scales prescribed under the Payment of Bonus Act, 1965. In addition, the determination of the quantum of bonus is legally a subject matter of collective bargaining. Therefore, monthly payment of bonus based on presumption cannot be a sound practice, though there is no explicit statutory bar on such practice. To be on the safer side, an amount equal to the minimum bonus can be monthly paid as a bonus advance and adjusted later against the actual quantum determined at the close of the Accounting Year.
From India, Salem
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From India, Salem
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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