How much statutory bonus will an employee gets?
What:
Bonus Pay is an additional pay given to an employee on top of his or her regular earnings. It is used by many organizations as recognition or regard to employees or a team that has achieved significant goals.
Applicability:
Any establishment with 20 or more employees or any factory with 10 or more employees
Employee Eligibility:
Employees getting Rs. 21,000 per month or less (basis + DA, excluding other allowances) and have completed 30 working days in that financial year
Components:
Salary/Wages only include Basic and DA for bonus payment and the rest of allowances (eg: HRA, overtime, etc) are excluded
Percentage:
Should be paid at the minimum rate of 8.33% and maximum rate of 20%. It needs to be paid within 8 months from the close of the accounting year
