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What is meaning of Statutory Bonus in simple words? It's a mandatory payment based on the company's profits, not your performance. The amount ranges from 8.33% to 20% of your salary, capped at Rs. 7,000 or the state minimum wage, whichever is higher.
Jun 27, 2024 · The Payment of Bonus Act, 1965 provides for the payment of a Statutory Bonus, which is often confused with the Incentive Bonus paid by employers. Unlike incentive bonus, which is an ex gratia payment, Statutory bonus is a compulsory payment by law.
Jul 16, 2020 · What is statutory bonus meaning in salary? ‘Statutory Bonus’ is the term used to refer to a bonus that is required to be paid by an employer to an employee. It is a form of incentive which is calculated using the employee’s basic salary plus a dearness allowance.
Jun 5, 2023 · What is a Statutory Bonus? The Payment of Bonus Act does not define the term ‘bonus’. A statutory bonus is a monetary incentive received in addition to the regular payment. The statutory bonus is a payment employers must pay to their employees under the Payment of Bonus act, 1965.
Feb 21, 2022 · A statutory bonus is a payout that is required by law. The payment of a statutory bonus under the Payment of Bonus Act 1965 is a matter of entitlement for the employee, not of choice...
The Payment of Bonus Act, 1965 provides for a minimum bonus of 8.33 percent of wages. The salary limited fixed for eligibility purposes is Rs. 3,500 per month and the payment is subject to the stipulation that the bonus payable to employees drawing wages or salary not exceeded to Rs.10000 per month would be calculated as if their salary or ...
Aug 16, 2019 · The Payment of Bonus Act, 1965 provides for the payment of a Statutory Bonus, which is often confused with the incentive bonus paid by employers. Unlike incentive bonus, which is an ex gratia payment, Statutory bonus is a compulsory payment by law.
A Statutory Bonus is a mandatory payment mandated by labor laws to ensure that employees receive a share of the company’s profits. It serves as a way to share the organization’s success with its workforce and motivate employees to contribute to its growth. Calculation of Statutory Bonus.
The payment of Bonus for a financial year has to be made within 8 months of closing the book of accounts. As financial year ends in March, payments are made by the end of October. Most companies generally pay the statutory bonus during Diwali. Bonus needs to be paid even for exited employees.
The term "bonus" has not been defined in any legislative enactment. Chamber's Twentieth Century dictionery defines "bonus" as "a premium beyond the usual interest for loan: an extra dividend to shareholders: a policyholder's share of profit, an extra payment to workmen or others: a doceur or bribe".
