As per Bonus Act,
"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 wages earned by the employee during the accounting year subject to a maximum of twenty per cent of such salary or wage"
Query : We have enough allocable surplus, can we declare a bonus percentage between 8.33% & 20% or we are liable to pay 20% flat?
Thanks,
Vishaka
From India, Mumbai
"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 wages earned by the employee during the accounting year subject to a maximum of twenty per cent of such salary or wage"
Query : We have enough allocable surplus, can we declare a bonus percentage between 8.33% & 20% or we are liable to pay 20% flat?
Thanks,
Vishaka
From India, Mumbai
Dear Mr. VISHAKA PILANKAR,
If the allocable surplus is enough to pay 20%, you are liable to pay 20%. If there any excess than 20%, balance amount subject to a ceiling of another 20% is to be deferred to coming 4 years to be added with corresponding years' allocable surpluswhich is called as set on.
Abbas.P.S
From India, Bangalore
517If the allocable surplus is enough to pay 20%, you are liable to pay 20%. If there any excess than 20%, balance amount subject to a ceiling of another 20% is to be deferred to coming 4 years to be added with corresponding years' allocable surpluswhich is called as set on.
Abbas.P.S
From India, Bangalore
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