Are the newly set up establishments exempted from paying bonus to their employees?
The newly set up establishment is exempted from paying bonus to its employees in the first five years following the year in which the employer sells the goods produced or manufactured by him. If, however, the employer derives profit in any of the first five years, he has to pay bonus for that year. The provisions of set on and set off are not applicable in such cases.
Call us on 09920-100-462 |Request a quotation
LK Nakashe Consultants Pvt. Ltd is India’s leading compliance & labour law consulting firm. Headquartered in Mumbai, we are ISO 9001 Certified & Crisil Certified, and we serve all 29 states and 7 union territories of India. Our service bouquet includes Registration & Renewal Services, End-to-End Monthly Compliance Services, Audit & Due Diligence Services, Advisory & Consulting Services, Payroll Management Services and Contract Staffing Services. Our client list of 750+ companies includes some of India’s biggest business conglomerates, MNCs, public listed companies & SMEs