Statutory bonus is a mandatory bonus that certain eligible employees in India are entitled to receive under the Payment of Bonus Act. This statutory bonus is usually calculated as a percentage of the employee's salary and paid once a year, subject to minimum and maximum limits set by law. Only employees below a certain salary threshold are typically eligible for statutory bonus. Companies must ensure timely payment of statutory bonus to remain compliant with labour laws.
Definitions are general guidance. Your organisation's policies and applicable local requirements determine how a term is used in practice.
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