Bonus Applicability for Startups - Is it mandatory to pay bonus to our employees who are less than 21000 CTC?

Hello, There is a query that I have. We have a company that was raised in October last year. We Have employee strength of 40.
Is it mandatory to pay bonus to our employees who are less than 21000 CTC.

Dear Friend,
Eligibility:
Every employee not drawing salary/wages beyond Rs. 21,000 per month who has worked for not less than 30 days in an accounting year, shall be eligible for bonus for minimum of 8.33% of the salary/wages even if there is loss in the establishment whereas a maximum of 20% of the employee’s salary/wages is payable as bonus in an accounting year.
For calculation purpose ceiling is capped at 7000.
Applicability:
The Act is applicable in whole of India where 10 or more workers are working, or were working on any day of the preceding 12 months with the aid of power. Or whereon 20 or more workers are working or were working on any day of preceding 12 months without the aid of power.

Please, want to draw your kind attention to Section 16(1) of the payment of bonus act whereby a concession can be availed by any newly set up business.

There is exemption for payment of Bonus for newly established companies for a period of five years.

Sec.16 of Bonus Act exempts new establishments from paying bonus during the fisrt five years except in the year in which they make profit.
Please go through Sec.16.
B.Saikumar
HR & Labour Relations Adviser.