Bonus

Bharat Patel (Querist) 15 October 2011 This query is : Resolved

What is legal provision for Payment of Bonus in case of comopany has suffered loss during the year.

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Sankaranarayanan (Expert) 15 October 2011
bonus is compulsory to pay even in loss, IF the company got grant as sick unit then they can .

Guest (Expert) 15 October 2011
Profit earned or incurred a loss by a company has nothing to do with payment of bonus to employees. Even in a loss making company, every employer shall be bound to pay to 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 per cent 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.

Sailesh Kumar Shah (Expert) 15 October 2011
Every employee who is drawing a salary or wage upto Rs.10000.00 per month and who has worked for minimum period of 30 days in a year is entitled to be paid bonus.