Dear Haris, As per the Bonus Act, the minimum bonus is still 8.33%. There is no amendment passed by the Parliament till this time. Abbas.P.S
From India, Bangalore
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552From India, Bangalore
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Haris, Revision of minimum bonus payment from 8.33% to 11% has been proposed but not passed by Govt till date. regards
From India, Bangalore
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From India, Bangalore
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Dear Mr Vijay, Please go through Payment of Bonus Act, you can solve all your problems. Manish S Joshi
From India, New Delhi
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From India, New Delhi
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Dear Mr. Phanikumar,
Thank you for your reply regarding the Bonus. I have a follow-up question - is it required or mandatory to give the Bonus every year once it has been started?
One more query - when we refer to Five years, does it mean five years after the company's production has started? In other words, if there is no production within the first five years, what happens?
I would appreciate it if you could please clarify this for me.
Regards,
Murali
From India, Hyderabad
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Thank you for your reply regarding the Bonus. I have a follow-up question - is it required or mandatory to give the Bonus every year once it has been started?
One more query - when we refer to Five years, does it mean five years after the company's production has started? In other words, if there is no production within the first five years, what happens?
I would appreciate it if you could please clarify this for me.
Regards,
Murali
From India, Hyderabad
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Dear Murali,
Once the bonus is paid, it is mandatory at 8.33% for all eligible workmen (drawing a gross salary of less than 10K). If production does not begin, then even after a 5-year incubation period, it becomes payable. Please check the act for the exact number of years, whether it is 5 or 6 years.
Thanks,
Manish S Joshi
From India, New Delhi
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Once the bonus is paid, it is mandatory at 8.33% for all eligible workmen (drawing a gross salary of less than 10K). If production does not begin, then even after a 5-year incubation period, it becomes payable. Please check the act for the exact number of years, whether it is 5 or 6 years.
Thanks,
Manish S Joshi
From India, New Delhi
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Dear Mr. Murali,
Bonus is to be paid every year once it is started. Under Section 16 (1A), the employer has to pay the bonus to its employees within five years if he gets any profit in the particular financial year. That is, if he sells any goods produced or manufactured by him or renders services and gets profits in a particular year, he has to pay the bonus in the next financial year.
Section 16(1B): After five years, he has to pay bonus as per Section 15 of the Act, i.e., as per Set on and Set off of Allocable Surplus.
Hope I have clarified your doubt.
D. Phani Kumar DGM- HR VASAVADATTA CEMENT
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Bonus is to be paid every year once it is started. Under Section 16 (1A), the employer has to pay the bonus to its employees within five years if he gets any profit in the particular financial year. That is, if he sells any goods produced or manufactured by him or renders services and gets profits in a particular year, he has to pay the bonus in the next financial year.
Section 16(1B): After five years, he has to pay bonus as per Section 15 of the Act, i.e., as per Set on and Set off of Allocable Surplus.
Hope I have clarified your doubt.
D. Phani Kumar DGM- HR VASAVADATTA CEMENT
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Dear Members,
It is regretted to place on record that some members are expressing their opinions without valid statutory amendments from the respective departments. As far as the Bonus Act is concerned, no amendments have taken place so far. The prevailing system, i.e., 8.33% minimum bonus, ₹3,500 bonus ceiling, and ₹10,000 salary ceiling, is still in place. Please post only authentic opinions to avoid confusion among learners and freshers.
Regards,
PVVB.KUMAR
From India, Kakinada
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It is regretted to place on record that some members are expressing their opinions without valid statutory amendments from the respective departments. As far as the Bonus Act is concerned, no amendments have taken place so far. The prevailing system, i.e., 8.33% minimum bonus, ₹3,500 bonus ceiling, and ₹10,000 salary ceiling, is still in place. Please post only authentic opinions to avoid confusion among learners and freshers.
Regards,
PVVB.KUMAR
From India, Kakinada
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