Is it mandatory to provide a statutory bonus? I came across information online stating that a statutory bonus is mandatory for employees earning less than 21,000 rupees per month. What are the consequences if I have missed paying the statutory bonus to 4 to 5 employees over the past 2 to 3 years?

Can you please explain which type of statutory bonus you are referring to? Or the link which you have referred.

@gul https://www.paisabazaar.com/salary/statutory-bonus/ Above is the link

In India, the Payment of Bonus Act, 1965 governs the payment of bonuses to eligible employees. According to the Act, an employer is generally required to pay a statutory bonus to employees who earn a certain salary or wage threshold. As of my knowledge cutoff in September 2021, the threshold for eligibility was ₹21,000 per month or less. If you have failed to pay the statutory bonus to eligible employees over the past 2 to 3 years, there could be potential consequences. Some possible implications could include: 1. Legal Penalties: Non-compliance with the Payment of Bonus Act may lead to legal consequences. The act empowers the authorities to take action against employers who fail to pay the statutory bonus. The penalties can vary depending on the severity of the non-compliance. 2. Liability for Unpaid Bonus: The affected employees may have the right to claim the unpaid bonus. They can approach the appropriate authority or file a complaint against the employer to seek their rightful dues. 3. Back Payments and Interest: If it is determined that the employees are entitled to the statutory bonus and the employer has failed to pay it, the employer may be liable to make back payments to the affected employees. Additionally, interest or penalties could be imposed for the delay in payment. It is important to rectify the situation by consulting with a legal expert or labor department officials who can provide guidance specific to your jurisdiction and circumstances. They can help you understand the exact legal implications and assist in resolving the issue appropriately.

Thank you @Harpreet Kaur

@Aishwarya Pandey There is an exception to the bonus act as per below screenshot

Thank you @tanya khurana 🙂