Statutory Bonus

Jul 16, 2020 | Blog, Do You Know | 0 comments

The statutory bonus in India is paid according to the bonus payment law (1965). The bonus is a deferred benefit, and some companies choose to pay it in advance. 

Eligibility for the bonus has been increased to include employees income up to INR 21,000 per month (up from INR 10,000 per month before).

Increase of the premium ceiling: previously, for the calculation of the statutory bonus, a salary ceiling of INR 3,500 per month was applied (so that the salary of an eligible employee exceeded INR 3,500 per month for calculation purposes). Of the statutory bonus, the bonus was calculated using a salary of INR 3,500 per month). This ceiling was increased to INR 7000 per month or the minimum wage for employment under the Minimum Wage Act 1948, whichever is greater.

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