Bonus settlement for exited employee

Hi,

How is bonus amount settled when an employee leaves organization before financial year is over?

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Usually statutory bonus is paid for the last year performance of the organisation.

And this is paid before OCT. If an employee quits little early we need to add this to the settlement or separate payment later. But needs to be paid.

Usually employees won’t file a case or remember this, but it’s a process to be followed for the betterment.

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Hi,

You need to pay statutory bonus which will be 8.33% on earned basic in the FY if an employee basic+Da is 21000/- or less than 21,000/-.

If an employee basic+DA is more than 21,000/- than its not mandatory to pay Bonus.

Regards
Arpana

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The statutory amount is paid on pro-rata basis in case the employee exits from the organisation in between the year

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