Dear All,
Kindly suggest regarding the Bonus Act, a few clarifications:
1. If the company is under loss, are we still eligible to pay the same? Please clarify with some note or any notifications.
2. Can we do self-registration even if the company has employees under 20 members?
Thanks/Regards.
From India, Bangalore
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Kindly suggest regarding the Bonus Act, a few clarifications:
1. If the company is under loss, are we still eligible to pay the same? Please clarify with some note or any notifications.
2. Can we do self-registration even if the company has employees under 20 members?
Thanks/Regards.
From India, Bangalore
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Dear Vinod,
Any establishment to which the Payment of Bonus Act, 1965 is applicable must pay a minimum bonus to employees, even if the company incurs a loss or does not have an allocable surplus in a particular accounting year. Please refer to Section 10 of the Payment of Bonus Act, 1965. Additionally, if you are interested, please see Section 26(1) of the Code on Wages, 2019, which is pending notification for enforcement.
Regarding your second question, it is not clear to me. If it relates to the applicability of the Payment of Bonus Act, 1965, it applies to every factory regardless of the number of employees. In other cases, the minimum number of employees required for the Act to apply is 20. However, the appropriate Government has the authority to reduce this number. I recommend referring to your State Rules for further clarification.
Thank you.
From India, Salem
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6185Any establishment to which the Payment of Bonus Act, 1965 is applicable must pay a minimum bonus to employees, even if the company incurs a loss or does not have an allocable surplus in a particular accounting year. Please refer to Section 10 of the Payment of Bonus Act, 1965. Additionally, if you are interested, please see Section 26(1) of the Code on Wages, 2019, which is pending notification for enforcement.
Regarding your second question, it is not clear to me. If it relates to the applicability of the Payment of Bonus Act, 1965, it applies to every factory regardless of the number of employees. In other cases, the minimum number of employees required for the Act to apply is 20. However, the appropriate Government has the authority to reduce this number. I recommend referring to your State Rules for further clarification.
Thank you.
From India, Salem
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