I want to know if a Pvt Ltd company is bound to give Festival Bonus to its employees or not.
Please let me know what the labor law is regarding this issue.
From India, Calcutta
Acknowledge(0)
Amend(0)
2Please let me know what the labor law is regarding this issue.
From India, Calcutta
Acknowledge(0)Amend(0)
Dear Pratap,
Payment of minimum bonus.—Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effecting relation to such employee as if for the words “one hundred rupees”, the words “sixty rupees” were substituted
Payment of maximum bonus.—(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting; year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage
From India, Mumbai
Acknowledge(0)Amend(0)
Payment of minimum bonus.—Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effecting relation to such employee as if for the words “one hundred rupees”, the words “sixty rupees” were substituted
Payment of maximum bonus.—(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting; year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Expert,
Thanks for your reply.
Also beside this, please let me know that, as per law a "Pvt. Ltd." organization can bound to give Bonus to his every employee ???
I was herd from someone that, "as per laws, a Private Limited organization not to bound to give any type of Bonus to his employee".
It is right or wrong ???
Regards,
Pratap Kar
Kokata
From India, Calcutta
Acknowledge(0)Amend(0)
Thanks for your reply.
Also beside this, please let me know that, as per law a "Pvt. Ltd." organization can bound to give Bonus to his every employee ???
I was herd from someone that, "as per laws, a Private Limited organization not to bound to give any type of Bonus to his employee".
It is right or wrong ???
Regards,
Pratap Kar
Kokata
From India, Calcutta
Acknowledge(0)Amend(0)
Dear Pratap,
All the companies and private organizations must also pay bonuses to all their employees if their salary is less than Rs. 10,000. If a person worked during the previous financial year, they will be paid a minimum bonus of Rs. 3499 and a maximum bonus of Rs. 8400. If the Allocable surplus is more, you can pay more than 8.33% but not exceeding 20%. If your company is incurring a loss, you must pay at least 8.33%. For calculation, you must consider the monthly salary as Rs. 3500 only, and for 12 months, it will be Rs. 42,000. If you calculate 8.33%, the minimum will be Rs. 3499, and for the maximum of 20%, it will be Rs. 8400.
Hope your doubt is cleared.
From India, Kumbakonam
Acknowledge(0)Amend(0)
All the companies and private organizations must also pay bonuses to all their employees if their salary is less than Rs. 10,000. If a person worked during the previous financial year, they will be paid a minimum bonus of Rs. 3499 and a maximum bonus of Rs. 8400. If the Allocable surplus is more, you can pay more than 8.33% but not exceeding 20%. If your company is incurring a loss, you must pay at least 8.33%. For calculation, you must consider the monthly salary as Rs. 3500 only, and for 12 months, it will be Rs. 42,000. If you calculate 8.33%, the minimum will be Rs. 3499, and for the maximum of 20%, it will be Rs. 8400.
Hope your doubt is cleared.
From India, Kumbakonam
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.