Dear All
I am working in a hotel industry. We are into budget category hotels and new in market. The company was incorporated in March2006 , but started its operations only in Jan'12. We have employees with less than and equal to 10K per month.Kindly let me know if we are eligible of paying Bonus to the employees. As i got to know that any new company (less than 5 years) is not eligible in Bonus Act.
From India, Gurgaon
1I am working in a hotel industry. We are into budget category hotels and new in market. The company was incorporated in March2006 , but started its operations only in Jan'12. We have employees with less than and equal to 10K per month.Kindly let me know if we are eligible of paying Bonus to the employees. As i got to know that any new company (less than 5 years) is not eligible in Bonus Act.
From India, Gurgaon
Dear Parul,
You are right... until & unless the company stabilizes you need not pay bonus to your employees... But I'm not sure if its 5 years or 1 year...
I'm sure that 1st year you are exempted..
Regards,
Bharghavi
From India, Bangalore
You are right... until & unless the company stabilizes you need not pay bonus to your employees... But I'm not sure if its 5 years or 1 year...
I'm sure that 1st year you are exempted..
Regards,
Bharghavi
From India, Bangalore
Hi
As per statue any new establishment has exemption in paying bonus for first 3years.
In case of losses then 6years. (First 3 years + extended 3 years due to loss).
Even if the company is in loss after 6 years then minimum 8.33% of Basic need to be paid.
Regards
Karthik
From India, Vijayawada
As per statue any new establishment has exemption in paying bonus for first 3years.
In case of losses then 6years. (First 3 years + extended 3 years due to loss).
Even if the company is in loss after 6 years then minimum 8.33% of Basic need to be paid.
Regards
Karthik
From India, Vijayawada
Hi karthik,
I have 1 doubt. In our company we are getting bonus as 8.33% on 3500. But my basic sal is 7450. I am working with a construction company. Can you please help me? I heard that the company in loss can consider the basic as 3500. Is it true??
Regards
Kalpit
From India, Mumbai
I have 1 doubt. In our company we are getting bonus as 8.33% on 3500. But my basic sal is 7450. I am working with a construction company. Can you please help me? I heard that the company in loss can consider the basic as 3500. Is it true??
Regards
Kalpit
From India, Mumbai
Yes it is true. Acc. to Bonus Act, Minimum Bonus should be calculated on 3500 basic and its 8.33% is minimum bonus.
From India, Delhi
From India, Delhi
Hi Kalpit,
The bonus is calucalted on Rs. 3500 with minimum 8.33% & maximum 20%, subject to basic salary of employees having upto Rs. 10000/PM. So, if your company has declared 8.33% bonus then it means you'd be entitled to Rs. 3500/-(3500*8.33/100*12). Every financial year, compnay has to declare statutory bonus that has to be paid to the employees. For the past several years, our company is paying bonus @ 15%(Rs. 6300, i.e., 3500*15/100*12) to the employees, which is above the minimum limit. Some companies even declare 20%(Rs. 8400, i.e., 3500*20/100*12).
Now, it is the discretion of the management to decide bonus in between 8.33% and 20%.
Hope Kalpit now you're clear with your doubts.
Thanks,
Bhumi
From India, Delhi
The bonus is calucalted on Rs. 3500 with minimum 8.33% & maximum 20%, subject to basic salary of employees having upto Rs. 10000/PM. So, if your company has declared 8.33% bonus then it means you'd be entitled to Rs. 3500/-(3500*8.33/100*12). Every financial year, compnay has to declare statutory bonus that has to be paid to the employees. For the past several years, our company is paying bonus @ 15%(Rs. 6300, i.e., 3500*15/100*12) to the employees, which is above the minimum limit. Some companies even declare 20%(Rs. 8400, i.e., 3500*20/100*12).
Now, it is the discretion of the management to decide bonus in between 8.33% and 20%.
Hope Kalpit now you're clear with your doubts.
Thanks,
Bhumi
From India, Delhi
the query is related to no. of yrs.for exemption of bonus act newly established organisation...... so, from 6th year, bonus act is applicable for the purpose of payment of bonus;
Section 16. Special provisions with respect to certain establishments. – 1[(1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act in accordance with the provisions of sub-sections (1-A), (1-B) and (1-C). (1-A) In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Act in relation to that year, but without applying the provisions of Section 15.
From India, Ahmadabad
Section 16. Special provisions with respect to certain establishments. – 1[(1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act in accordance with the provisions of sub-sections (1-A), (1-B) and (1-C). (1-A) In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Act in relation to that year, but without applying the provisions of Section 15.
From India, Ahmadabad
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