Dear all, Please tell me if the organisation is not making any profit so are they eligiable to pay the bonus to the employees or no.
From India, Thane
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From India, Thane
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Dear Melcy ji,
You are requested to view the link provided below to find the answer to your query: https://www.citehr.com/454814-about-...igibility.html
Thank you.
From India, Mumbai
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2584You are requested to view the link provided below to find the answer to your query: https://www.citehr.com/454814-about-...igibility.html
Thank you.
From India, Mumbai
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Bonus has to be paid irrespective of the fact, whether the company is making a profit or loss. It is a statutory obligation. However, a newly setup company need not to pay statutory bonus for the first 5 years. But in case the company makes a profit in any of the said five years, then the company should pay statutory bonus to employees.
From India, Delhi
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From India, Delhi
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Irrespective of loss a company is liable to pay a minimum bonus of 8.33% maximum up to 20% according to Bonus act, 1965.
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Melcy Ji,
Below are 4 cases that may definitely clear your doubt:
1. If the company is earning profits and has not completed 5 years, then employees are eligible to receive a bonus based on BASIC+DA (according to the 1965 Act).
2. If the company is earning profits and has completed 5 years, the same eligibility criteria as above applies.
3. If the company is earning losses and has not completed 5 years, there is no eligibility to receive a bonus.
4. If the company is earning losses and has completed 5 years, employees are eligible to receive a bonus. This bonus is calculated between 8.33% to 20% on BP+DA, and employees who earn less than 10000 are eligible for the bonus.
Thanks and Regards,
Madhavi
From India, Visakhapatnam
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Below are 4 cases that may definitely clear your doubt:
1. If the company is earning profits and has not completed 5 years, then employees are eligible to receive a bonus based on BASIC+DA (according to the 1965 Act).
2. If the company is earning profits and has completed 5 years, the same eligibility criteria as above applies.
3. If the company is earning losses and has not completed 5 years, there is no eligibility to receive a bonus.
4. If the company is earning losses and has completed 5 years, employees are eligible to receive a bonus. This bonus is calculated between 8.33% to 20% on BP+DA, and employees who earn less than 10000 are eligible for the bonus.
Thanks and Regards,
Madhavi
From India, Visakhapatnam
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Dear All,
I have discussed with my seniors the possibility of initiating bonuses, gratuity, leaves, and EPF for our employees. However, they are currently hesitant due to our small employee strength of 19 and the fact that we have only been in the industry for 2 years. Despite this, we have managed to make some profit.
I would appreciate any guidance on key points that I can present to them in order to obtain approval for these benefits. It would also be helpful to understand the relevant government acts that support these initiatives.
Thank you.
From India, Thane
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I have discussed with my seniors the possibility of initiating bonuses, gratuity, leaves, and EPF for our employees. However, they are currently hesitant due to our small employee strength of 19 and the fact that we have only been in the industry for 2 years. Despite this, we have managed to make some profit.
I would appreciate any guidance on key points that I can present to them in order to obtain approval for these benefits. It would also be helpful to understand the relevant government acts that support these initiatives.
Thank you.
From India, Thane
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Dear Melcy ji,
Greetings of the day to you as well as all viewers.
You mentioned that your employee strength is 19, and your company is 2 years old. You are on the borderline of coverage under EPF, ESI, and the Bonus Act. You are already covered under the Gratuity Act and MLW Fund, and leave rules are applicable to you.
Being in a borderline situation is always risky. Apart from these 19 employees, you may have hired part-time employees, contract employees, etc. Your Directors/Partners are also counted for computing the threshold limit under certain circumstances. In such situations, your liability may increase.
It appears that you are based in Mumbai-Thane. You can contact me and enter into a commercial contract so that you can avail of services/advice from me periodically on a retainer basis.
From India, Mumbai
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Greetings of the day to you as well as all viewers.
You mentioned that your employee strength is 19, and your company is 2 years old. You are on the borderline of coverage under EPF, ESI, and the Bonus Act. You are already covered under the Gratuity Act and MLW Fund, and leave rules are applicable to you.
Being in a borderline situation is always risky. Apart from these 19 employees, you may have hired part-time employees, contract employees, etc. Your Directors/Partners are also counted for computing the threshold limit under certain circumstances. In such situations, your liability may increase.
It appears that you are based in Mumbai-Thane. You can contact me and enter into a commercial contract so that you can avail of services/advice from me periodically on a retainer basis.
From India, Mumbai
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As your company is only 2 years old and is already profitable, according to the Bonus Act, if the company makes a profit in any of the 5 years, there is a requirement to pay bonus to the employees. Therefore, based on your profitability, you can consider paying the bonus.
From India, Bhubaneswar
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From India, Bhubaneswar
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