The Government of Kerala vide its notification dated 14th August 2020 has issued guidelines to issue of bonus to employees of public sector institutions, a minimum of 8.33% shall be paid as bonus to employees of companies where Government holds the majority of shares and the industries which has started production in the previous five accounting years, including 2019-20 may issue minimum bonus.
Employees (not including apprentice) drawing a salary of up to Rs. 24000 in public sector institutions may be paid bonus and other employees drawing salaries of more than 24,000 no other ex gratia payment or bonus shall be paid other than festive bonus and firms that operated at a profit during the FY 2019-2020 must pay the Bonus as per the Payment of Bonus Act while ensuring that there is no violation of Section 11 of the Act prohibiting payment of more than 20% as bonus.
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