Guidelines for the Payment of Bonus Act
I am the Lead HR of a new company. The employee strength is 20+. The project is ongoing. We will be commercializing after 2 years, i.e., the company will start earning after 2 years. In this scenario, I would like to know the guidelines of the Payment of Bonus Act.
1. Are we supposed to include the bonus in the employee CTC from now onwards, or should we wait for commercialization to begin?
2. Are we supposed to pay the bonus even when the project is ongoing, or can we start to pay the bonus only after commercialization?
3. If we have to pay the bonus after commercialization, do we have to pay the bonus for the period when the company was not earning?
From India, Chennai
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I am the Lead HR of a new company. The employee strength is 20+. The project is ongoing. We will be commercializing after 2 years, i.e., the company will start earning after 2 years. In this scenario, I would like to know the guidelines of the Payment of Bonus Act.
1. Are we supposed to include the bonus in the employee CTC from now onwards, or should we wait for commercialization to begin?
2. Are we supposed to pay the bonus even when the project is ongoing, or can we start to pay the bonus only after commercialization?
3. If we have to pay the bonus after commercialization, do we have to pay the bonus for the period when the company was not earning?
From India, Chennai
Acknowledge(0)Amend(0)
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THE PAYMENT OF BONUS ACT.doc