Dear Sir,
My company construction was started on 24july 2007 and commercial production was started on 01april 2008.There are two trade unions one is INTUC and another one is CITU company recognized with INTUC.
Now this dusera festival management announced exgratia about 2500/- for every employee after discussion with INTUC office bearers,but CITU people argued with the management and how you announced exgratia as per the bonus act 1965 you have to pay minimum bonus 8.33%,submitted letter the management.
They went to DCL office given letter regarding this issue.
Now i want know that the bonus is eligible or not, and if eligible what are the criteria,if not eligible what i have to do.
Please help me sir.
Thanks & Regards,
A.Mahesh
From India, Hyderabad
1My company construction was started on 24july 2007 and commercial production was started on 01april 2008.There are two trade unions one is INTUC and another one is CITU company recognized with INTUC.
Now this dusera festival management announced exgratia about 2500/- for every employee after discussion with INTUC office bearers,but CITU people argued with the management and how you announced exgratia as per the bonus act 1965 you have to pay minimum bonus 8.33%,submitted letter the management.
They went to DCL office given letter regarding this issue.
Now i want know that the bonus is eligible or not, and if eligible what are the criteria,if not eligible what i have to do.
Please help me sir.
Thanks & Regards,
A.Mahesh
From India, Hyderabad
You must be paying bonus under Payment of Bonus Act 1965, for the accounting year 2012-2013 (01/04/2012 to 31/03/2013), that is the 4th accounting year following the accounting year in which production was started.
1.) If you company is making/showing profit as per the balance sheet then you are bound to pay minimum 8.33% of the annual wage/salary (Basic+DA) paid to the employees.
2.) If your company is in loss as per the balance sheet then you are not bound to pay bonus till the 5th accounting year following the accounting year in which production was started.
3.) If you company has paid bonus earlier then it can not stopped now and you have to pay minimum bonus i.e 8.33%.
3.) But if the allocable surplus (for 2012-2013) of your company exceeds the amount of minimum bonus payable (8.33%) to the employees then you have pay to bonus which shall be in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of 20% of such wage/salary.
regards,
Kamal P
From India, Pune
1.) If you company is making/showing profit as per the balance sheet then you are bound to pay minimum 8.33% of the annual wage/salary (Basic+DA) paid to the employees.
2.) If your company is in loss as per the balance sheet then you are not bound to pay bonus till the 5th accounting year following the accounting year in which production was started.
3.) If you company has paid bonus earlier then it can not stopped now and you have to pay minimum bonus i.e 8.33%.
3.) But if the allocable surplus (for 2012-2013) of your company exceeds the amount of minimum bonus payable (8.33%) to the employees then you have pay to bonus which shall be in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of 20% of such wage/salary.
regards,
Kamal P
From India, Pune
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