Calculation of the Bonus Amount
1. Basic Salary + DA < 7,000, then in such cases,
Bonus Payable = (Basic Salary + DA) * Amount %, either 8.33% (establishment is supposed to give even in case of deficit) or could go up to 20%
2. Basic Salary + DA > 7000, then in such cases,
Bonus Payable = ₹7000, % either 8.33% (establishment is supposed to give even in case of deficit) or could go up to 20%
Statutory Compliance on the part of the Employer
Considering the given act, there are certain compliances on the part of employers that they are obliged to follow, such as:
- The amount of Bonus shall be paid within 8 months by the employer, from the end of the accounting year in cash.
- The employer shall prepare different registers, such as: Register having the entire computation of allocable surplus (Form A), Register showing set-on and set-off (Form B). Register containing details such as bonus payable, deductions to be made, amount disbursed (Form C).
- Employer must upload on or before 1st February every year the details of annual returns in Form D, on the portal of the Ministry of Labour and Employment.
- Annual return is supposed to be filed in Form D by every employer to the inspector on or before 1st February every year.
- In case of disputes related to bonuses, the amount shall be paid within one month from the date the award passed becomes enforceable.