Non acceptance of bonus

dear ms kadam,

The Payment of Bonus Act is applicable to your establishment, if 10 or more workmen are engaged.  If  your establishment is neew, then it is exempted for 5 years from it, however if the profit is made, then the act becomes applicable for that year.  As per section 10 of the Act, you are required to pay minimum bonus @ 8.33% of wage earned by the employee during the accounting year or Rs 100/- whichever is higher. If allocable surplus exceeds minimum bonus payable then employer has to pay bonus proportionate to salary or wage earned during that period, ceiling is 20%(max.)  Therefore, you can pay the bonus as per this calculation and you have time limit upto 30th Nov. for final payment (within 8 months of closure of accounting year).  So violation of the act will attract punishment.  If you send the bonus cheque by registered post, it will show your bonafides, yet you cant escape the liability under the law.