Payment Of Bonus
Bhupendra Dubey
(Querist) 23 October 2010
This query is : Resolved
Dear Sir,
I am working in a Pvt. Ltd. Co. Since last 4 months. which trades for used machines.Less than 20 workers or employees work here.We have asked for Bonus at Diwali to Managing Diretor of the company but he denied for paying Bonus and said it is not a company. This is just a warehouse so there is not any matter of paying Bonus.
My Question is that Are we elligible to get Bonus (8.33%)? or not. Please reply by email.
Bhupendra Dubey
bhupendradubey_982@yahoo.co.in
9654676802
Jacob Pratap
(Expert) 23 October 2010
There must be 20 or more employees working in a establishment for coverage under the Payment of Bonus Act, 1965. However, some States have reduced this figure to 10 workers. For this you should check the notification of your State from the Labour department. In case your company is covered under the Act then for the first five years you are entitled to bonus only in the year the company makes profit. From sixth year, you are entitled to a minimum bonus @ 8.33% or a higher bonus as per profit and set on and set off formula as laid down in the Act. Exact advise can only be given on case to case basis.
Sri Vijayan.A
(Expert) 24 October 2010
It can be opined after getting full details only.
