Bonus coverage

PBS KUMAR (Querist) 08 September 2011 This query is : Resolved
Dear Experts,

If the company in loss, even the allocable and available surplus checkings. Is it mandatory to pay the Bonus to the employees ? Please give the reasons with case laws if any.

Regards,

PBS KUMAR

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Shailesh Kr. Shah (Expert) 08 September 2011
every establishment in which employs 20 or more employees. It is mandatory that even if the establishment is running in loss, it has to pay minimum bonus @ 8.33% to all its employees whose monthly salary does not exceed Rs 10000 under the Payment of Bonus Act.

Guest (Expert) 08 September 2011
It is mandatory by law. Maximum depends upon the company's discretion based on its profitability, but minimum is a must in compliance with the provisions of law.