I would like to know from after how many years employer is liable to pay bonus.
From India, Delhi
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1From India, Delhi
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Hi Vijay, There is no such rule related to COMPULSORY BONUS payable at a particular period of time. It depends from Company to Company as and when or which employee they like to give.
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Hi Vijay, There is no such rule related to COMPULSORY BONUS payable at a particular period of time. It depends from Company to Company as and when or which employee they like to give.
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Please refer to section 16 of the Payment of Bonus Act, 1965 for your query.
R.N. Khola
www.skylarkassociates.com/
From India, Delhi
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R.N. Khola
www.skylarkassociates.com/
From India, Delhi
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Hi, As per the Act, it is not compulsary to pay Bonus up to five years from the start year of the comany if there is no allocable surplus amount. regards
From India, Bangalore
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From India, Bangalore
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Employer's Obligation to Pay Bonus
An employer is liable to pay a bonus only after 5 years of its establishment. After the completion of this period, even if there is no allocable surplus, the employer must pay the employees the minimum bonus.
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Ranjit Kumar
Sr. Officer (HR & Admin)
From India, Ahmadabad
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An employer is liable to pay a bonus only after 5 years of its establishment. After the completion of this period, even if there is no allocable surplus, the employer must pay the employees the minimum bonus.
Regards,
Ranjit Kumar
Sr. Officer (HR & Admin)
From India, Ahmadabad
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First of all, decide whether the Payment of Bonus Act is applicable to you or not. The Act has a wage ceiling, and accordingly, it needs to be paid. Furthermore, as some colleagues suggested, if it is a new company, it need not pay a bonus until the completion of 5 years, unless it earns a profit in those years.
Regards,
S N Sitaram
From India, Hyderabad
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Regards,
S N Sitaram
From India, Hyderabad
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The employee is obligated to pay the Bonus after a period of 5 years from the year in which he sets up his establishment or factory. He has to pay the Bonus at a rate depending upon the allocable surplus, subject to a maximum of 20%. Even in the absence of allocable surplus, he must pay the Minimum Bonus, which is currently 8.33%. He is required to pay the Bonus even before 5 years if he earns profits and has allocable surplus.
Regards,
D. Phani Kumar
DGM-HR, VASAVADATTA CEMENT.
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Regards,
D. Phani Kumar
DGM-HR, VASAVADATTA CEMENT.
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Dear All, As per my understanding, the government has revised the minimum bonus payment from 8.33% to 11%. Haris Human Resources
From India, Tiruchchirappalli
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From India, Tiruchchirappalli
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Dear Sir, As per my understading, the govt has revised the minimum bonus pay from 8.33% to 11%. Regards Haris Human Resources
From India, Tiruchchirappalli
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From India, Tiruchchirappalli
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Dear Haris, As per the Bonus Act, the minimum bonus is still 8.33%. There is no amendment passed by the Parliament till this time. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Dear Mr Vijay, Please go through Payment of Bonus Act, you can solve all your problems. Manish S Joshi
From India, New Delhi
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From India, New Delhi
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Thank you for your reply regarding the bonus. I have a follow-up question: Is it required or mandatory to give the bonus every year once it has been started?
One more query: When we refer to five years, does it mean five years after the company's production has started? In other words, if there is no production within the first five years, what happens?
I would appreciate it if you could please clarify this for me.
Regards,
Murali
From India, Hyderabad
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One more query: When we refer to five years, does it mean five years after the company's production has started? In other words, if there is no production within the first five years, what happens?
I would appreciate it if you could please clarify this for me.
Regards,
Murali
From India, Hyderabad
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Once the bonus is paid, it is mandatory at 8.33% for all eligible workmen (drawing a gross salary of less than 10K). If production does not begin, then even after a 5-year incubation period, it becomes payable. Please check the act for the exact number of years, whether it is 5 or 6 years.
Thanks,
Manish S Joshi
From India, New Delhi
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Thanks,
Manish S Joshi
From India, New Delhi
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Bonus is to be paid every year once it is started. Under Section 16 (1A), the employer has to pay the bonus to its employees within five years if he gets any profit in the particular financial year. That is, if he sells any goods produced or manufactured by him or renders services and gets profits in a particular year, he has to pay the bonus in the next financial year.
Section 16(1B): After five years, he has to pay the bonus as per Section 15 of the Act, i.e., as per Set on and Set off of Allocable Surplus.
Hope I have clarified your doubt.
Regards,
D. Phani Kumar
DGM- HR
VASAVADATTA CEMENT
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Section 16(1B): After five years, he has to pay the bonus as per Section 15 of the Act, i.e., as per Set on and Set off of Allocable Surplus.
Hope I have clarified your doubt.
Regards,
D. Phani Kumar
DGM- HR
VASAVADATTA CEMENT
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Amendment to Payment of Bonus Act 2015.jpg
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THE PAYMENT OF BONUS ACT.doc