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ersh............. (student)     30 October 2010

monthly statuitory bonus


I want to ask that if sta. bonus paid on monthly basis then whether esi will be calculated on that?


 5 Replies

Pathikrit Naha (DGM - HR & ADMIN)     30 October 2010

Any thing paid on regular basis will attract ESI, yearly bonus are not covered ubder ESI.

V. VASUDEVAN (LEGAL COUNSEL)     30 October 2010

The statutory bonus cannot be calculated. The bonus has to be declared in accordance with the Payment of Bonus Act and disbursed annually. However an advance can be given and adjusted against the actual payment when declared and paid.

ersh............. (student)     30 October 2010


thank to both of you for reply, 

actualy i m asking this query coz as far i know, all those components which are gvn in accordance to ur performance like monthly gross, ot,commission are part of esi gross, but if st. bonus is also gvn as fix salary compo  then that is defined as prorata wise or non prorata wise? even if anything; we are not working extra for st. bonus,

so i m confused whether st. bonus will attract esi or not!

radha krishna (vp-hr)     03 November 2010

As per regulation, any amount paid regularly attracts ESI (whether you call is bonus/staturoy bonus).

At the same time Bonus is the one which is linked to the closure of accouts and is arrvied at after following a process of computation as stipulated in the Payment of Bonus Act.

However, for any compelling reasons if you want to pay bonus monthly you have the following two options:

1. Pay as advance and adjust after bonus is declared.

2. Incorporate a condition in the appointment order as mentioned below (or ) enter into an agreement with the staff/union on the following condition:

"Bonus will be paid monthly in the salary at the rate of ________%.The amount so paid will be adjusted after the final figure of bonus is declared as per the Payment of Bonus Act. The adjustment will be by way of recovery in case of amount is excess paid or by way payment if the amount is less paid. The adjustment i.e, recovery or payment will be made in the salary payable for the month of_________".

The above process may help you in not paying ESI contributions on this component. 

ani (self employed)     03 December 2010


Dear friends,

As per the guidance received from the discussions, I have sent a letter to the HR manager asking for the Bonus. 

So far I have not received any reply or response to that. 

Shall I approach the labour department with the photocopy of the letter and receipt of registered post?

Please guide.


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