BONUS.....IS IT TO BE PAID...........?

srinaren · #1 (**permalink**) 23-09-2006, 10:51 PM

Hi Friends,

Please do not raise your eyebrows by seeing the caption! In fact I need your help!

A new company started the business in September 2004. Do the company has to pay bonus to the employees according to the Payment of Bonus Act, 1965? If yes, on what basis? Is it not the first five years are infancy period and no bonus to be paid? If no, then on what basis?

Friends....can you please enlighten me on this issue on top priority?

-Srinaren

farz23 · #2 (**permalink**) 24-09-2006, 03:19 PM

Hi,
According to the Payment of Bonus Act 1965 if company is making profit it has to necessarily pay the minimum bonus of 8.33 % of basic salary earned by an employee. The calculation of Allocable surplus and amout of bonus is calculated in Form A & B through which amount to be disburs can be calculated

wagh_umesh · #3 (**permalink**) 24-09-2006, 07:59 PM

if company makes profit then bonus should be paid 8.33% of basic salary. if no profit then no need to pay bonus (subject to first 5 years only).

rajendra_33377 · #4 (**permalink**) 01-09-2008, 11:34 AM

hi gsys please tele me in which critearea an employee should eligible for bonus ?

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