Hi
I just want to check if a company has not paid bonus since 2006 and just came to know about the bonus act which states that a minimum bonus shall be bound to be paid to employees. Therefore, should the bonus be paid for each year since 2006 until 2010 or what is the minimum years of bonus to be covered and paid to the employees.
Rgds,
Jane - Malaysia
From Malaysia, Petaling Jaya
1I just want to check if a company has not paid bonus since 2006 and just came to know about the bonus act which states that a minimum bonus shall be bound to be paid to employees. Therefore, should the bonus be paid for each year since 2006 until 2010 or what is the minimum years of bonus to be covered and paid to the employees.
Rgds,
Jane - Malaysia
From Malaysia, Petaling Jaya
Dear patriciajane
The following information are required to answer your query
1.When the company was started
2.Number of persons employed by the company with category wise details
3.What is the nature of business done by the company
From India, Madras
The following information are required to answer your query
1.When the company was started
2.Number of persons employed by the company with category wise details
3.What is the nature of business done by the company
From India, Madras
Hi Mr Hari & Joseph,
Fyi, the company started somewhere in 2000, and bonus was payed in the year of 2005. However, the company was not profitable until todate. But what i heard recentlly is, even if the company is not profitable, they are still required to pay bonus to staff. We are actually a construction based company with a number of 19 staff scattered throughout the sites offices.
We are currently looking into the requirements as per the Payment of Bonus Act 1965. Do we require to pay since 2006 or can we pay only for the past 3 years.
What about ex-gratia, how is it practised in India. If we pay ex-gratia, do we still need to pay bonus.
I hope you could give me some advice on this matter.
Rgds,
Jane - Malaysia
From Malaysia, Petaling Jaya
Fyi, the company started somewhere in 2000, and bonus was payed in the year of 2005. However, the company was not profitable until todate. But what i heard recentlly is, even if the company is not profitable, they are still required to pay bonus to staff. We are actually a construction based company with a number of 19 staff scattered throughout the sites offices.
We are currently looking into the requirements as per the Payment of Bonus Act 1965. Do we require to pay since 2006 or can we pay only for the past 3 years.
What about ex-gratia, how is it practised in India. If we pay ex-gratia, do we still need to pay bonus.
I hope you could give me some advice on this matter.
Rgds,
Jane - Malaysia
From Malaysia, Petaling Jaya
Hi Jane,
According to India's Payment of Bonus Act, any establishment which has completed its 5 years of operation in the country is bound to pay the minimum bonus(compulsory) to its employees. The company may or may not earn profit by the time, and the number of employees working in the company is irrespective in this situation.
Secondly the compulsory bonus amount is to be given to those employees whose salary is less than Rs.10000 per month. Salary in this case means Basic Salary+Dearness Allowance.
The minimum amount of bonus a company should provide to an employee= 8.33% of Yearly Salary(Basic+DA) or Rs.3500 whichever is higher.
The maximum amount of bonus a company should provide to an employee= 20% of Yearly Salary(Basic+DA).
And your liability of paying bonus starts when you complete 5 years of operation in India and it is not due since you commenced your operation.
There is no specific act for ex-gratia, it is a voluntary contribution by the companies, and mostly given to the employees those are not covered under bonus act, i.e. those whose salary(Basic+DA) is more than Rs.10000 per month.
Thanks,
Naina
From India, Bhubaneswar
According to India's Payment of Bonus Act, any establishment which has completed its 5 years of operation in the country is bound to pay the minimum bonus(compulsory) to its employees. The company may or may not earn profit by the time, and the number of employees working in the company is irrespective in this situation.
Secondly the compulsory bonus amount is to be given to those employees whose salary is less than Rs.10000 per month. Salary in this case means Basic Salary+Dearness Allowance.
The minimum amount of bonus a company should provide to an employee= 8.33% of Yearly Salary(Basic+DA) or Rs.3500 whichever is higher.
The maximum amount of bonus a company should provide to an employee= 20% of Yearly Salary(Basic+DA).
And your liability of paying bonus starts when you complete 5 years of operation in India and it is not due since you commenced your operation.
There is no specific act for ex-gratia, it is a voluntary contribution by the companies, and mostly given to the employees those are not covered under bonus act, i.e. those whose salary(Basic+DA) is more than Rs.10000 per month.
Thanks,
Naina
From India, Bhubaneswar
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