Queries Regarding Payment of Bonuses
I have certain queries regarding the payment of bonuses:
• Is it mandatory to pay bonuses to employees even when the company makes no profit?
• What is the eligibility of employees to receive a bonus under the act?
• When should the bonus be paid to employees?
My company is a private limited company with a workforce of 90+ employees located in Tamil Nadu. Kindly help me understand.
Thanks.
From India, Chennai
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2I have certain queries regarding the payment of bonuses:
• Is it mandatory to pay bonuses to employees even when the company makes no profit?
• What is the eligibility of employees to receive a bonus under the act?
• When should the bonus be paid to employees?
My company is a private limited company with a workforce of 90+ employees located in Tamil Nadu. Kindly help me understand.
Thanks.
From India, Chennai
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Even though the company doesn't make a profit, 8.33% is to be paid towards a bonus. If the salary is Rs. 10,000/- or below, the bonus is eligible for the employee. The bonus has to be paid within 8 months from the concerned accounting year (Accounting year is April - March, hence the last date to pay the bonus is November 30).
Regards,
Abbas.P.S
From India, Bangalore
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Regards,
Abbas.P.S
From India, Bangalore
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Dear Abbasiti Thank you very much for your response. Kindly clarify me, if an employee is drawing 25,000/month, is he not eligible for bonus or is their any slab upto which he is eligible for bonus.
From India, Chennai
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From India, Chennai
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Apart from what Abbas has replied, it is not mandatory to pay a bonus under the Act if the pay is more than Rs. 10,000 per month. The company is at liberty to pay Ex Gratia in lieu of a bonus if it desires to do so.
From India, Ahmadabad
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From India, Ahmadabad
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Amendment to Payment of Bonus Act 2015.jpg
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