Nov 2024 R&M
The time limit for the payment of bonus to eligible employees for the financial year 2023-24 is 30th of November, 2024 i.e. eight months from the end of the financial year.
Bonus, under the provisions of the Payment of Bonus Act, 1965, is payable to all employees drawing a salary (Basic + DA) up to Rs.21,000/- per month. Bonus however, has to be paid on the actual wages earned.
The percentage of bonus to be paid is to be arrived at after complying with the computation of gross profits etc., and the employer is required to maintain the calculations by completing Form “A”, “B” & “C”.
Any employee who has worked for 30 days in that accounting year is entitled to bonus. Calculation of bonus to employees is based upon the following guidelines:
- If the Basic & DA is below Rs. 7,000/- per month then, that actual Basic & DA is to be taken for calculation of bonus.
- If the Basic & DA is more than Rs. 7,000/- per month, then bonus has to be paid on the actual salary or the minimum wage fixed for that scheduled employment whichever is higher.
- Minimum bonus payable is 8.33% and maximum is 20%. Thus, bonus is also, payable to ex employees also if they have earned wages for 30 days in the said financial year. Further you could recover any outstanding amount, due from the ex employee if is reflected in the full and final settlement.