Bonus act
Querist :
Anonymous
(Querist) 31 October 2011
This query is : Resolved
One of the oldest 100% export house functioning since five digit years and never losses in revenue in balance sheet. Company all ready distributed before 20% bonus but current financial year Managing Director asked the HR Department distribute reduce bonus 8.33%. If HR Deptt.distribute reduce bonus 8.33% What Ground show the reduce bonus reason. please clearify on the matter and why we not reduce the figure of bonus current years.
Sailesh Kumar Shah
(Expert) 31 October 2011
Company shall not distribute bonus below 20% subject to Section 11. Which says that Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting; year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage.
