Dear Team, Is it ok to pay bonus amount on monthly basis instead of paying it on yearly basis. Is it legal Rahul.
From India, Verna
From India, Verna
Hi Mr.Raghul, If it is agreed mutually between management and employees than you can pay bonus monthly. With Regards Mr.Thumbs Up
From India, Chennai
104From India, Chennai
No. It is not allowed.
Bonus can be paid only once a year, which is after preparation of form A and B. And to be paid within 8 months of end of the financial year.
You are allowed to set off customary bonus, but that too is set off of one customers bonus. It needs to be customary for the industry or the company. Monthly payment is not customary bonus.
Any money paid monthly is a part of wages and salary, so if bonus paid monthly, then it's no longer bonus but a part of gross wages. So you will be required by law to pay it again
From India, Mumbai
Bonus can be paid only once a year, which is after preparation of form A and B. And to be paid within 8 months of end of the financial year.
You are allowed to set off customary bonus, but that too is set off of one customers bonus. It needs to be customary for the industry or the company. Monthly payment is not customary bonus.
Any money paid monthly is a part of wages and salary, so if bonus paid monthly, then it's no longer bonus but a part of gross wages. So you will be required by law to pay it again
From India, Mumbai
Mr.Rahul,
I agree with Mr.Banerjee. The Bonus payment to be paid once in a year after company"s accouts finalized for tax computation. Payment of Bonus shall be kept in provisional in balance sheet as payable. Form A and Form B ie set off and allocable surplus etc to be maintained. Payment of bonus on mon thly basis does not fall within the purview of the Payment of Bonus Act.
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
I agree with Mr.Banerjee. The Bonus payment to be paid once in a year after company"s accouts finalized for tax computation. Payment of Bonus shall be kept in provisional in balance sheet as payable. Form A and Form B ie set off and allocable surplus etc to be maintained. Payment of bonus on mon thly basis does not fall within the purview of the Payment of Bonus Act.
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
I would disagree.
Even if the profit is enough to pay minimum bonus, the fact that you have paid bonus monthly would make that payment a part of wages and salaries. The company will be liable to pay bonus again at the end of the year / 8 months from end of the year.
From India, Mumbai
Even if the profit is enough to pay minimum bonus, the fact that you have paid bonus monthly would make that payment a part of wages and salaries. The company will be liable to pay bonus again at the end of the year / 8 months from end of the year.
From India, Mumbai
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