Statutory bonus payment
himanshu gupta
(Querist) 23 March 2020
This query is : Resolved
is it compulsory to pay statutory bonus at 20 % rate if an organisation have the surplus profit to pay
Rajendra K Goyal
(Expert) 23 March 2020
Which is the Industry / concern?
What is previous bonus payment history?
After payment of 20% bonus what % of profit left with concern?
Bonus payment is subject to certain conditions.
Raj Kumar Makkad
(Expert) 23 March 2020
The minimum rate is prescribed but not maximum. The minimum is 8.33%.
Raj Kumar Makkad
(Expert) 23 March 2020
The nature of industry also matters so clear this point also.
Dr J C Vashista
(Expert) 24 March 2020
Is it a private / public / government organisation / department ?
How many employees / workers are affected ?
It is advisable to consult and engage a local prudent lawyer for better appreciation of facts/ circumstances/ documents, professional guidance and necessary proceeding.
Rajendra K Goyal
(Expert) 24 March 2020
It seems the author is not interested to provide basic information required by the experts.
T. Kalaiselvan, Advocate
(Expert) 24 March 2020
As per statutory laws, the Government on India mandates organisations to pay yearly bonuses to their employees
The Payment of Bonus Act, 1965, in summary:
1. Applicable to any establishment with 20 or more employees or any factory with 10 or more employees.
2. Eligible for employees drawing ₹21000 per month or less (basic + DA, excluding other allowances). As per the 2015 amendment, when salary exceeds ₹7000 or the minimum wages fixed by the government, bonus is payable on whichever is higher.
3. Bonus payable will be at a min rate of 8.33%, and max at 20 %.
If you do not fit into the applicability criteria, you can stop worrying about paying any bonuses. The HR customers can automatically calculate appropriate amount of bonuses compliant with all statutory laws, if they do fit into the criteria.
Raj Kumar Makkad
(Expert) 24 March 2020
If author is not interested to provide the desired replies, let him suffer.
Rajendra K Goyal
(Expert) 25 March 2020
The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act. The maximum bonus including productivity linked bonus that can be paid in any accounting year shall not exceed 20% of the salary / wage of an employee under the section 31 A of the Act.
https://www.indiafilings.com/learn/payment-of-bonus-act/
Raj Kumar Makkad
(Expert) 26 March 2020
I correct myself that the maximum limit has also been prescribed as 20%.
