1.Define Bonus payment to employee.
2.Is Bonus applicable for a new or one year old company?
Is Employees strength a requirement? Then how many.
Do temporary employees are entitled for bonus.
3.If company is making loss, in the first year or first 4 years, would Bonus become applicable. if yes, how much %
4. Which accounting year Bonus must be paid and by what date.
5..What is the quantum - minimum and to a maximum bonus paid?
6.. Would more than 10,000 or 15,000 per month salary come under Bonus payment
7. For those over 10,000 per month salary, is it must to be paid as Ex-gratia instead of Bonus. .
8. Can Bonus be included in the employee CTC and paid in employee monthly salary, with a min.of .8.33%
9. In the event o Employee misconduct, can Bonus be held back or adjusted in employee dues
in his Full & final settlement.
Appreciate your line of reply against each of those.
rgds: chandrasekar /Regional Manager - India
From India, Chennai
2.Is Bonus applicable for a new or one year old company?
Is Employees strength a requirement? Then how many.
Do temporary employees are entitled for bonus.
3.If company is making loss, in the first year or first 4 years, would Bonus become applicable. if yes, how much %
4. Which accounting year Bonus must be paid and by what date.
5..What is the quantum - minimum and to a maximum bonus paid?
6.. Would more than 10,000 or 15,000 per month salary come under Bonus payment
7. For those over 10,000 per month salary, is it must to be paid as Ex-gratia instead of Bonus. .
8. Can Bonus be included in the employee CTC and paid in employee monthly salary, with a min.of .8.33%
9. In the event o Employee misconduct, can Bonus be held back or adjusted in employee dues
in his Full & final settlement.
Appreciate your line of reply against each of those.
rgds: chandrasekar /Regional Manager - India
From India, Chennai
1.An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.
2.As per Bonus Act 1965 bonus always distribute for previous year.
if your company just finish one accounting year it mean that the payment of bonus will distribute next accounting year.
hence not applicable.
Minimum 20 employees.
it depend on contract or if you are showing in your payroll than it will. otherwise not.
3. If company gone under losses upto 5 years, no need to distribute bonus, after five year still company under losses, BIFR will audit your company and it will decide that your company sick our not is sick than you have to pay bonus after shelling some part of property of company.
4.for last year it is paid and after 8 months of ending of last accounting year.
5.Min-8.33%
Max-20%
6.after 10,000/ you have to pay EX-Gratia.
7. yes.
8.yes you are free to do this.
9. It depend on you but S/he is entitle for bonus.
As per act if s/he did 30 working days work in previous accounting year than S/he entitle for bonus.
From India, Mumbai
52.As per Bonus Act 1965 bonus always distribute for previous year.
if your company just finish one accounting year it mean that the payment of bonus will distribute next accounting year.
hence not applicable.
Minimum 20 employees.
it depend on contract or if you are showing in your payroll than it will. otherwise not.
3. If company gone under losses upto 5 years, no need to distribute bonus, after five year still company under losses, BIFR will audit your company and it will decide that your company sick our not is sick than you have to pay bonus after shelling some part of property of company.
4.for last year it is paid and after 8 months of ending of last accounting year.
5.Min-8.33%
Max-20%
6.after 10,000/ you have to pay EX-Gratia.
7. yes.
8.yes you are free to do this.
9. It depend on you but S/he is entitle for bonus.
As per act if s/he did 30 working days work in previous accounting year than S/he entitle for bonus.
From India, Mumbai
Dear Mr.Chandra,
First 5 years are considered to be infancy period. hence payment of bonus is not necessary.
once it is paid, even in case of loss u hv to pay minimum .i.e 8.33%. maximum of 3500 per annum.
above salary of 10000, he is a non eligible employee and payment is not statutory and mandatory. i you wish can pay as exgratia.
thanks
Amar Abrar
From India, Lucknow
First 5 years are considered to be infancy period. hence payment of bonus is not necessary.
once it is paid, even in case of loss u hv to pay minimum .i.e 8.33%. maximum of 3500 per annum.
above salary of 10000, he is a non eligible employee and payment is not statutory and mandatory. i you wish can pay as exgratia.
thanks
Amar Abrar
From India, Lucknow
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc