Liability of Bonus

Jagmohan Rawat (Querist) 15 June 2011 This query is : Resolved
Dear Friends,

Kindly let me know whether a Pvt Ltd company which is making losses since the the 2 years of its existence is required to pay minimum bonus to the employees. It has approx. 30 employees on payroll.

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abhay dholakiya (Expert) 15 June 2011
No its not bounded

R.Ramachandran (Expert) 15 June 2011
Section 10 of the Payment of Bonus Act, 1965 provides that "every employer shall be bound to pay ...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."

Guest (Expert) 15 June 2011
SIR,
KINDLY NOTE THAT STATURY BONUS AT A RATE OF 8.33 PER CENT OF ANNUAL SALARY OF EMPLOYEE WHO HAS WORKED FOR MORE THAN 30 DAYS IN A YEAR SHOULD BE PAID TO EMPLOYEE.IT IS MANDATORY IRRESPECTIVE OF PROFIT OR LOSS OF THE CO..GOOD LUCK.

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