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
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
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link outdated-removed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link outdated-removed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
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
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
From India, Chandigarh
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