Dear All,
Our's is a company that was formed 1.5 years back. We have 30 employees from the company formation date. Is it mandatory to pay BONUS now especially when the company is still in its inception stage. Please advise.
Thanks,
Ravi
From India, Madras
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2Our's is a company that was formed 1.5 years back. We have 30 employees from the company formation date. Is it mandatory to pay BONUS now especially when the company is still in its inception stage. Please advise.
Thanks,
Ravi
From India, Madras
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Dear ravi your company is in infancy period .if you are getting porofits during infancy period than only you are required to pay bonus otherwise not.
From India, Delhi
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From India, Delhi
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Dear Sir,
Appreciate your quick response. Thank you.
I'd like to know if the ACT says that it is not mandatory to pay Bonus if the company has not completed 5 years from the date of formation. Is that right? Please guide.
Thanks,
Ravi
From India, Madras
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Appreciate your quick response. Thank you.
I'd like to know if the ACT says that it is not mandatory to pay Bonus if the company has not completed 5 years from the date of formation. Is that right? Please guide.
Thanks,
Ravi
From India, Madras
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Special Provisions with respect to certain newly set up establishments:
In the case of newly set up establishments following provisions have been made under Section 16 for the payment of bonus:
1. Where an establishment is newly set up whether before or after 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.
(1-B) For the sixth and seventh 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.
FOR MORE DEATILS
<link outdated-removed> ( Search On Cite | Search On Google )
https://www.citehr.com/368728-bonus-...mentation.html
All the best
<link outdated-removed> ( Search On Cite | Search On Google )
From India, Vijayawada
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In the case of newly set up establishments following provisions have been made under Section 16 for the payment of bonus:
1. Where an establishment is newly set up whether before or after 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.
(1-B) For the sixth and seventh 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.
FOR MORE DEATILS
<link outdated-removed> ( Search On Cite | Search On Google )
https://www.citehr.com/368728-bonus-...mentation.html
All the best
<link outdated-removed> ( Search On Cite | Search On Google )
From India, Vijayawada
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As per payment of Bonus Act I newly formed company is exempted from paying bonus to its employees for first five years. But if the company in these five years generate profits then it is liability of the company to pay bonus (Minimum 8.33%)to its employees.
From India, Chandigarh
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From India, Chandigarh
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Consider the following scenario:
A company in its 2nd year with 50 employees. Its profit is Rs. 50,000. If 8.33% of wages equals Rs. 100,000, will the company distribute the Rs. 50,000 as a bonus? If yes, then is the bonus less than 8.33% (minimum)? What happens in this scenario?
From India
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A company in its 2nd year with 50 employees. Its profit is Rs. 50,000. If 8.33% of wages equals Rs. 100,000, will the company distribute the Rs. 50,000 as a bonus? If yes, then is the bonus less than 8.33% (minimum)? What happens in this scenario?
From India
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Amendment to Payment of Bonus Act 2015.jpg
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