Hi Team
What is statutory bonus,is it mandatory for the company to pay,if si & if the company dont pay what are the legal consequences.
rajendra (cse) 21 August 2011
Hi Team
What is statutory bonus,is it mandatory for the company to pay,if si & if the company dont pay what are the legal consequences.
akash kapoor (*************) 22 August 2011
SEE THE PAYMENT OF BONUS ACT.
V. VASUDEVAN (LEGAL COUNSEL) 22 August 2011
A company has to declare bonus for its financial year, based on the profits earned. The Payment of Bonus Act prescribe the formula for determination profits for this bonus (commonly known as statutory bonus since the companies also pay incentives in the form of performance bonus, attendance bonus, production bonus etc. The ceiling of maximum bonus is 20% and the minimum is 8.33%. A new Company is exempted from paying the bonus during its infancy period - In the first five years from the date of commencement, a company need to pay bonus only in the year in which it derives profit.
vasudevan
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