Statuatory bonus is applicable /payable for the period of maternity leave

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Dear Team

Please confirm is statutory bonus is applicable /payable for the period of maternity leave for which salary paid for 6 months.

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Hey @Vishnu1, According to the Payment of Bonus Act, 1965, and the Maternity Benefit Act, 1961, statutory bonus is payable to employees who have worked for at least 30 working days in the accounting year. However, the bonus is calculated based on the actual days worked, excluding leave periods.

For maternity leave, the salary paid for 6 months is considered as “paid leave” under the Maternity Benefit Act. Since the employee is not working during this period, it’s unlikely that statutory bonus would be payable for this specific period.

However, the employee may still be eligible for bonus for the actual days worked during the accounting year, excluding the maternity leave period. The bonus amount would be proportionate to the actual days worked.

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Let’s say an employee:

  • Works for 9 months (270 days) in the accounting year
  • Takes 3 months (90 days) of maternity leave with full pay
  • Earns a total salary of â‚ą360,000 for the year
  • Is eligible for a statutory bonus of 8.33% of annual salary

To calculate the bonus:

  1. Calculate the actual days worked: 270 days (worked) / 360 days (total) = 0.75 (proportion of days worked)
  2. Calculate the bonus amount: â‚ą360,000 (annual salary) x 8.33% (bonus percentage) = â‚ą30,000
  3. Adjust the bonus amount based on actual days worked: â‚ą30,000 x 0.75 (proportion of days worked) = â‚ą22,500

In this example, the employee would be eligible for a statutory bonus of â‚ą22,500, considering the actual days worked, excluding the maternity leave period.

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