Our company (Pvt Ltd) has been incurring losses from FY 06-07 onwards. However, the company made a profit during FY 05-06 and paid minimum bonuses for FY 05-06, 06-07, and 07-08. Is our company liable to pay a bonus for FY 08-09 even though it incurred a loss during that period?
From India, Mumbai
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From India, Mumbai
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dear bonus is not decided by profits of one year.you first tell how old is your company. if your company is more than five years than profits does not have any comcern. regards jsmalik
From India, Delhi
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174From India, Delhi
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Thank you for the quick reply. Our company was incorporated in 1994, and the business was taken over by other management (shareholders). All employee appointments have been considered from July 1, 2006, onwards. Does this situation exempt the company from paying bonuses to employees?
From India, Mumbai
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From India, Mumbai
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dear your company is preparing their balance sheet from more than five years ,so exemption for you. regards js malik
From India, Delhi
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From India, Delhi
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dear sir your answer says "So Exemption for you" is it so ? . or it is no exemption for you
From India, Mumbai
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From India, Mumbai
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dear no exemption for your company if company is preparing balance sheet from last five years. regards jas malik
From India, Delhi
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From India, Delhi
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What is the period ceiling for the Balance Sheet? Is it necessary for the company to pay bonuses even if it is running at a loss, even after being in operation for three years? I am asking this as we recently had a discussion on this topic.
Kamal
From India, New Delhi
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Kamal
From India, New Delhi
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Your company is not eligible for an exception because there is a continuous business operation and a balance sheet for your company from 1994. Your company is liable to pay a minimum bonus of 8.33% (since you mention that there is a loss in the balance sheet).
Regards, R. Palaniswamy
From India, Coimbatore
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Regards, R. Palaniswamy
From India, Coimbatore
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Mr. Malik, Sir can you tell me what is the bonus rate for Maharashtra and is it same across d india or state wise? Regards Minal
From India, Mumbai
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From India, Mumbai
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The Bonus rate is 8.33 % in all states except J&K.............if the company has been in existance for more than 5 years it has to pay the minimum bonus of 8.33 %
From India, Pune
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From India, Pune
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The minimum bonus that an employer is required to pay, even if he suffers losses during the accounting year or there is no allocable surplus, is 8.33% of the salary during the accounting year. The balance payable is "Set Off".
Now you have mentioned that you were paid the minimum, and the remaining amount has not been paid yet. As per the Bonus Act, in a situation where for any accounting year there is no available surplus or the allocable surplus falls short of the minimum bonus payable to the employees, and there is no amount or sufficient amount carried forward and set on that could be utilized for the purpose of payment of the minimum bonus, then such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year.
I hope this is the information you have been looking for.
Regards,
Chandru
From India, Madras
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Now you have mentioned that you were paid the minimum, and the remaining amount has not been paid yet. As per the Bonus Act, in a situation where for any accounting year there is no available surplus or the allocable surplus falls short of the minimum bonus payable to the employees, and there is no amount or sufficient amount carried forward and set on that could be utilized for the purpose of payment of the minimum bonus, then such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year.
I hope this is the information you have been looking for.
Regards,
Chandru
From India, Madras
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BONUS PAYMENT SHEET FORMAT.xls
Amendment to Payment of Bonus Act 2015.jpg
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