It was in the news about 2-3 months back, but nothing concrete has been approved. After the proper approval process, a notification would be issued. Only then will we have to think about it.
The news has been published today (2nd Oct) in the newspapers. In the winter season, it would be put before parliament and then it would be further taken. Though the eligibility limit for coverage has been enhanced to INR 10,000/- (Basic + DA), the computation limit has been raised merely by INR 1,000/-, which is not right at all considering the fact that the limit has been raised after 10 years.
I would like to inquire about who is covered under the Bonus Act and what specific payments are required for each category of employees. Additionally, I am seeking clarification on when and which establishments are subject to the Bonus Act.
Applicability of Payment of Bonus Act:
Every factory where 10 or more persons are employed with the aid of power, or an establishment in which 20 or more persons are employed without the aid of power on any day during an accounting year.
Payment of Minimum Bonus:
8.33% of the salary or Rs.100 (on completion of 5 years after the 1st accounting year even if there is no profit).
(1) Whether five years are to be counted from the date of incorporation/setup or from the start of activities. It would be appreciated if you could please quote a reference for evidence or provide the name of the site.
(2) If the company has been running in profit from the beginning, from which year is a bonus payable?
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