Explainer | What is a Statutory Bonus?
Updated: 21 Feb 2022, 05:07 PM IST
TL;DR.The Payment of Bonus Act authorises the payment of a Statutory Bonus, which is frequently confused with an employer-paid Incentive Bonus. Unlike an incentive bonus, which is paid out of pocket, a statutory bonus is required by law. Everything you need to know about statutory bonuses, eligibility, calculation, and more is right here.
A statutory bonus is a payout that is required by law. The payment of a statutory bonus under the Payment of Bonus Act 1965 is a matter of entitlement for the employee, not of choice for the employer.