End of Year Bonus: Essential Information to Know

The end of year bonus is a highly anticipated event for employees as the holiday season approaches. Companies prepare to disburse this bonus, although some SMEs report facing financial challenges. Nevertheless, this payment is strictly governed by law.

For employees earning less than Rs 100,000 per month, legislation permits companies to pay 75% of the bonus at least five working days before December 25, with the remaining balance due no later than December 31, the last day of the year.

If these regulations are not followed, employees are encouraged to file a complaint with the nearest labor office.

This is explained by Me Juhi Desai, Senior Advisor at the Ministry of Labor.