MONTHLY STATUTORY BONUS – DOES IT ATTRACT PF AND ESI?

Understanding the legal position under the Labour Codes Many employers pay statutory bonus annually, while some prefer to distribute it every month along with salary. This raises an important compliance question: If statutory bonus is paid monthly, does it automatically attract Provident Fund (PF) and Employees’ State Insurance (ESI) contributions? The answer is not necessarily . Under the Labour Codes, the nature of…