I want to know if a Pvt Ltd company is bound to give a Festival Bonus to its employees or not. Please let me know what the labor law is regarding this issue.
From India, Calcutta
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2From India, Calcutta
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Payment of Minimum Bonus
Subject to the other provisions of this Act, every employer shall be bound to pay every employee, in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year.
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effect in relation to such an employee as if for the words "one hundred rupees," the words "sixty rupees" were substituted.
Payment of Maximum Bonus
(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay every employee in respect of that accounting year a bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year, subject to a maximum of twenty percent of such salary or wage.
From India, Mumbai
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Subject to the other provisions of this Act, every employer shall be bound to pay every employee, in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year.
Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effect in relation to such an employee as if for the words "one hundred rupees," the words "sixty rupees" were substituted.
Payment of Maximum Bonus
(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay every employee in respect of that accounting year a bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year, subject to a maximum of twenty percent of such salary or wage.
From India, Mumbai
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Dear Expert, Thanks for your reply. Also, besides this, please let me know if, as per law, a "Pvt. Ltd." organization is bound to give a bonus to every employee. I heard from someone that, "as per laws, a Private Limited organization is not bound to give any type of bonus to its employees." Is this right or wrong?
Regards,
Pratap Kar
Kolkata
From India, Calcutta
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Regards,
Pratap Kar
Kolkata
From India, Calcutta
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All companies and private organizations must pay bonuses to all their employees if their salary is less than Rs. 10,000. If a person worked during the previous financial year, they will be paid a minimum bonus of Rs. 3,499 and a maximum bonus of Rs. 8,400. If the allocable surplus is more, you can pay more than 8.33% but not exceeding 20%. If your company is incurring a loss, you must pay at least 8.33%. For calculation, you must consider the monthly salary as Rs. 3,500 only, and for 12 months, it will be Rs. 42,000. If you calculate 8.33%, the minimum will be Rs. 3,499, and for the maximum of 20%, it will be Rs. 8,400.
Hope your doubt is cleared.
Regards
From India, Kumbakonam
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Hope your doubt is cleared.
Regards
From India, Kumbakonam
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