Dear Seniors,
Our company has inadequate profit, i.e., 6.89% NP before bonus disbursement. Please clarify in this scenario: Is it mandatory to disburse the minimum 8.33% bonus for FY 2015-16? If yes, will the company incur a loss?
Please guide.
Regards,
Amit
From India, Jaipur
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6Our company has inadequate profit, i.e., 6.89% NP before bonus disbursement. Please clarify in this scenario: Is it mandatory to disburse the minimum 8.33% bonus for FY 2015-16? If yes, will the company incur a loss?
Please guide.
Regards,
Amit
From India, Jaipur
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Sir, there are two points:
1) Firstly, in State V Sardar Dalip Singh, it was held that section 10 is mandatory, so even in losses, the minimum bonus is to be paid.
2) Minimum bonus is paid irrespective of whether the entity has allocated surplus or not.
From India, Kolkata
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1) Firstly, in State V Sardar Dalip Singh, it was held that section 10 is mandatory, so even in losses, the minimum bonus is to be paid.
2) Minimum bonus is paid irrespective of whether the entity has allocated surplus or not.
From India, Kolkata
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Dear Mr. Amit,
Payment of bonus for 2015-16 is currently on stay by Courts throughout India, and the matter is yet to be decided by the Court. In the Hon'ble Mumbai High Court, the case is scheduled for 12.2.2017. Please wait and observe for the court's ruling.
Thank you.
From India, Thane
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Payment of bonus for 2015-16 is currently on stay by Courts throughout India, and the matter is yet to be decided by the Court. In the Hon'ble Mumbai High Court, the case is scheduled for 12.2.2017. Please wait and observe for the court's ruling.
Thank you.
From India, Thane
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You have to pay minimum bonus of 8.33% u/s 10 of the Act,even if you have no profit. This provision is not stayed by any Court.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear Tks ji, Is it that Bonus for 2015-16 is put on STAY by court through out India? I request you to kindly upload the Stay Order after due reading on this platform Sir. I will be highly obliged.
From India, Mumbai
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From India, Mumbai
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Dear all our company has made the profit of 26.96% pls let me know in this scenario can we pay only 8.33% bonus or will i have pay surplus also redgs Aman
From India, Jaipur
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From India, Jaipur
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Bonus Stay Order and Wage Limit Implications
The bonus for 2015-16 has been stayed all over India by the Hon'ble Mumbai High Court against WPL No.1548/2016. However, some are suggesting that Section 10 is compulsory. Yes, it is compulsory, provided the worker fits within the bonus eligibility criteria regarding the wage limit.
Here, respected members should read between the lines of the Hon'ble Court's stay order, which mentions the government notification of raising the wage limit from 10,000 to 15,000 (now 21,000) and its retrospective applicable period of 2014-15 & 2015-16 being stayed. In this case, if anyone needs to pay a bonus for these two years, kindly verify the worker's wage for these years to become eligible for the bonus.
Once the stay is vacated by the Hon'ble Court, only then will the wage limit and the mentioned years come into effect.
The above information is for HR executives to stay updated.
Thank you.
From India, Thane
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The bonus for 2015-16 has been stayed all over India by the Hon'ble Mumbai High Court against WPL No.1548/2016. However, some are suggesting that Section 10 is compulsory. Yes, it is compulsory, provided the worker fits within the bonus eligibility criteria regarding the wage limit.
Here, respected members should read between the lines of the Hon'ble Court's stay order, which mentions the government notification of raising the wage limit from 10,000 to 15,000 (now 21,000) and its retrospective applicable period of 2014-15 & 2015-16 being stayed. In this case, if anyone needs to pay a bonus for these two years, kindly verify the worker's wage for these years to become eligible for the bonus.
Once the stay is vacated by the Hon'ble Court, only then will the wage limit and the mentioned years come into effect.
The above information is for HR executives to stay updated.
Thank you.
From India, Thane
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It is the retrospective applicability from 2014-15 ,is stayed not 2015-16.The amendments applicability from 1.4.2015 is still there.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Amit,
Not the percentage of your profit but your quantum of profit is relevant to the Payment of Bonus Act.
Kanthan,
Only the eligibility clause of the Bonus for 2014/15 is stayed because it was from retrospective effect. Don't say that there is a stay on the entire payment and that too for 2015/16.
From India, Mumbai
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Not the percentage of your profit but your quantum of profit is relevant to the Payment of Bonus Act.
Kanthan,
Only the eligibility clause of the Bonus for 2014/15 is stayed because it was from retrospective effect. Don't say that there is a stay on the entire payment and that too for 2015/16.
From India, Mumbai
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STAY-ORDER-HIGH -COURT-OF-KERAL A-PAYMENT-OF-BO NUS-AMENDMENT-A CT-2015-1.pdf
Amendment to Payment of Bonus Act 2015.jpg