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In our company we have four unions and every year in the month of August - September bonus discussion starts. 3 years back we were paying only statutory requirements i.e. 8.33% year by year the demand of the unions raised and last year the company has paid 20%. This year the unions are demanding for 20% plus exgratia of 20% which is 40 %. the company will,for sure will not agree on this and unions also know this. eventhough they are asking for 40% so that they can settle between 20 and 40%. But companys profit is not constant.over the years the profit has been diminished constantly. The company has around 11 plants all over India. Among those 8 plants were profiatalble and 3 were in loss, one among them was were i am working. The unions are demandind for the balancesheet of all the units. They knew that the company is on profit all together but since its this particular unit goes in loss there are chances of closing it in some years. Pls suggest some views on it to settle within statutory norms and company is ready to face legal issues in this regard. But in return workers will be aggitated slow down and other things can happen to the production which will have huge impact on unit profit.

Your valuable suggestions pls....

Warm Regards


From India, Bangalore
Dear Calyan,
There is no guidelines under Bonus Act that Company has to pay Bonus beyond 20%. Limit of Bonus is 20% (Rs. 8400/-) only and not more than that.
If your Company is maintaining Balance Sheet & Profit & Loss separately then the bonus will be clear separately not in 1 Audit Report.
Please go through the Bonus Act.

From India, Surat
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