Greetings, My query is regarding the Payment of Bonus Act in relation to the statutory bonus applicable to employees.
Eligibility for Bonus Payment
1.) If the company has made a loss for the past accounting year, is it still eligible to pay a bonus for employees earning below 21,000? (The establishment of the company was in the late 1990s; therefore, it is well out of the infancy period).
Documents for Set-On and Set-Off
2.) If the company is eligible to pay the same, what documents are to be sought to understand the set-on and set-off from the past years?
Components for Bonus Calculation
3.) While calculating the payment of the bonus for employees, should only their basic + DA be considered? In this case, conveyance, special allowance, and education/medical allowance are to be disregarded.
Requesting all help in this urgent matter, thanks.
From India, Bengaluru
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3Eligibility for Bonus Payment
1.) If the company has made a loss for the past accounting year, is it still eligible to pay a bonus for employees earning below 21,000? (The establishment of the company was in the late 1990s; therefore, it is well out of the infancy period).
Documents for Set-On and Set-Off
2.) If the company is eligible to pay the same, what documents are to be sought to understand the set-on and set-off from the past years?
Components for Bonus Calculation
3.) While calculating the payment of the bonus for employees, should only their basic + DA be considered? In this case, conveyance, special allowance, and education/medical allowance are to be disregarded.
Requesting all help in this urgent matter, thanks.
From India, Bengaluru
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As the organization is not in its infancy period, a minimum bonus has to be paid. If there is any amount set aside in the past (4 years), that can be used for the payment of the bonus. Otherwise, the entered bonus amount will be set off.
Only Basic and DA, subject to a maximum of 21,000/-, will be eligible for the bonus.
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons]
From India, New Delhi
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Only Basic and DA, subject to a maximum of 21,000/-, will be eligible for the bonus.
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons]
From India, New Delhi
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Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc