Our Company is making losses for the last two years, does Company need to pay a Bonus?

Hello,

Our company has been experiencing losses for the past two years. Does the company still need to pay a bonus?

Even if your company is at a loss, you will have to disburse the statutory minimum bonus to your employees.

Dear Member,

If your company is covered under the Payment of Bonus Act, 1965 and is in the infancy period, then in the case of losses, the company is not required to pay any bonus to the employees. If you are out of the infancy period, then even if the company is facing losses, the company is required to pay the minimum payable bonus to the covered employees for that accounting year.

Regards,
R N KHOLA

If the company is 5 years old, bonuses have to be paid.

Col. Rathi

If the company is in the infancy period as per the Payment of Bonus (PB) Act and has incurred a loss, there is no need to pay a bonus. However, if there is any profit (allocable surplus) during the infancy period, a bonus must be paid. Once a bonus has been paid, even if there is a loss during the infancy period, a bonus must be paid at a minimum rate of 8.33%.

Once the infancy period is over, if there is a loss, a minimum bonus must still be paid.

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Dear All,

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