Bonus liability
6 months ago
Whether statutory bonus is payable to an employee who is on maternity leave
A.Dear Client
Yes, as per the law, an employee on maternity leave is entitled to receive statutory bonus. Maternity leave should not affect an employee's eligibility for statutory bonuses, as long as the employee meets the eligibility criteria based on the terms of the Bonus Act or other applicable labor laws. The payment of the statutory bonus is typically based on the company's profitability and the criteria outlined in the law, and it is not generally affected by an employee's temporary absence due to maternity leave.
Yes, as per the law, an employee on maternity leave is entitled to receive statutory bonus. Maternity leave should not affect an employee's eligibility for statutory bonuses, as long as the employee meets the eligibility criteria based on the terms of the Bonus Act or other applicable labor laws. The payment of the statutory bonus is typically based on the company's profitability and the criteria outlined in the law, and it is not generally affected by an employee's temporary absence due to maternity leave.
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A.Dear Client,
The Maternity Benefit (Amended) Act 2017 provides full compensation to women employees during their maternity leave. Compensation via the maternity leave policy is calculated based on their salary or daily wages in the three months before their maternity leave request. S.14 of the Payment of Bonus Act,1965 deals with the "Computation of the number of working days". For the purpose of computation of minimum bonus and maximum bonus payable to an employee, as per S.14(d) of the Act, the period spent on maternity leave with salary or wage during the accounting year should be deemed as the days worked. There is no provision in the Payment of Bonus Act to make any deduction in the payment of a bonus on account of taking leave of any kind including maternity leave. The amount of bonus payable to an employee for a year depends on the wage/salary earned in the respective accounting year. Leave salary is also earned by the employee with respect to the service and the other eligibility conditions. Accordingly, an employee who is on maternity leave is eligible for payment of a statutory bonus from her employer.
The Maternity Benefit (Amended) Act 2017 provides full compensation to women employees during their maternity leave. Compensation via the maternity leave policy is calculated based on their salary or daily wages in the three months before their maternity leave request. S.14 of the Payment of Bonus Act,1965 deals with the "Computation of the number of working days". For the purpose of computation of minimum bonus and maximum bonus payable to an employee, as per S.14(d) of the Act, the period spent on maternity leave with salary or wage during the accounting year should be deemed as the days worked. There is no provision in the Payment of Bonus Act to make any deduction in the payment of a bonus on account of taking leave of any kind including maternity leave. The amount of bonus payable to an employee for a year depends on the wage/salary earned in the respective accounting year. Leave salary is also earned by the employee with respect to the service and the other eligibility conditions. Accordingly, an employee who is on maternity leave is eligible for payment of a statutory bonus from her employer.
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