Statutory Bonus 2023-24

  • Objective
  • Applicable To
  • Eligibility
  • Components of Bonus
  • Min / Max and limits on bonus payments
  • time limits on bonus payments
  • Disqualification of bonus
  • Bonus payment calculation
  • Bonus Register and Records
  • Objective : – To reward the employee of the organization by sharing the profits earned and is linked to productivity
  • Applicable To : – Any establishment with 20 or more employees
  • 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 of Bonus : – Salary / Wages only include basic and DA for bonus payment and the rest of allowances (eg, HRA, overtime, etc.) are excluded
  • Min / Max : – Should be paid at the minimum rate of 8.33% and maximum rate of 20%
  • Time limits on bonus payments : – It needs to be paid within 8 months from the close of the accounting year
  • Disqualification of bonus :- Employees can be disqualified if they are dismissed on the basis of fraud, misconduct, or any similar situation
  • Bonus Calculation : – As per the amendment on the Payment of Bonus Bill passed in 2015, if the gross earning of the employee is below Rs. 21,000, employers are liable to pay bonuses
  • First you have to check whether Basic salary + DA is not exceeding Rs. 21000.
  • If it is more than 21000 then Stat bonus is not applicable.
  • If Basic + DA exceeds Rs. 7500 then you have to restrict it to Rs.7500.
  • After that you have to give effect for absenteeism for each month.
  • After that to all applicable cases you have to pay 8.33% of their paid Basic + DA of every month they worked in the financial year.
  • If there is allocable surplus in current year or set on from previous year then you will be required to pay bonus more than 8.33%
  • A Register Showing Allocable surplus in Form A
  • A Register Showing Set on and Set off of allocable surplus in Form B
  • A Register showing the details of the bonus disbursement with the deduction u/s 17 & 18 in Form C
  • Employer should send a Return in Form D to the inspector within 30 days
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