Bonus

Indian law on bonus relate to legal issues and rights of workers in the context of bonus. However, what is a bonus? How did the concept evolve? These are questions that may rush through your mind, right? So, this discussion will help you understand interesting information about how and where it all began.

Most of the companies are aware of the fact that money is a powerful incentive to motivate and increase the morale of workers, particularly in the industrial sector. Ensuring productivity is of paramount importance in industrial development. That is why employers often make extra cash payments, other than the wages or salary to the employees, which is known as bonus. Bonus is often directly linked to performance of an employee.

The term ‘bonus’ has a magical effect on professionals, doesn’t it?  If you are a professional, it is a word that you expect to see and benefit from. This is defined as a boon or gift over and above what is nominally due as remuneration to the receiver. In the industrial context, a bonus can be defined as an incentive or extra monetary benefit given to workers other than their salary or wages.