Dear Team members, I have a question related to the Payment of Bonus Act, if the start date of the company is 11th March 2016 (IT Service provider) then the company will complete 5 years on 11th March 2021, does the company need to pay a bonus for the broken period of March-2021 on prorate basis that is from 12th March 2021-31st March 2021 on or before November 2021 or company need not pay any bonus for 2021 & start paying bonus from the year 2022 onwards? your guidance in this query will be really helpful. Thanks.
From India, Mumbai

Get a holistic view of Project Management that would cover modern tools & techniques →
Promoted: XLRI - Executive Development Program in Project Management for Senior Professionals (Explore Course)

Don't be under the impression that there is immunity from payment of bonus for the first five years. As per Section 16 (1A) even with respect to the first five years bonus as per the Payment of Bonus Act 1965 is payable for those accounting years in which there is a profit.
As to the eligibility for the part year, the Act does not lay down any criteria of minimum service post infancy period. That means proportionate bonus is payable. If the overall allocable surplus is negligible, you can carry it forward to the next year (set on ) in your records.

From India, Mumbai

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHR.Comô

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server