Photo: Ron Lach

Who is not eligible for bonus?

Applicability of the Act It applies to any factory or establishment which had twenty or more workers employed on any day during the year. The act does not apply to the non-profit making organisations. It is not applicable to establishments such as LIC, hospitals which are excluded under Section 32.

indiafilings.com - Payment of Bonus Act - Applicability - IndiaFilings

What are the three types of cheating?

Categories or types of infidelity include physical infidelity, emotional cheating, cyber infidelity, object infidelity, and financial infidelity.

Last updated Sep 3, 2019

What personality type is a gambler?

ENFJ (The Protagonist): Gamblers with Control It is more likely that they will play in land-based casinos against other players, relying both on...

Last updated Mar 31, 2018

Make Your Bookie Cry And Pull The Hair By Generating $23,187

Promotion

Payment of Bonus Act

Learn HR Regulations Payment of Bonus Act

Payment of Bonus Act

The payment of Bonus Act, 1965 aims to regulate the amount of bonus to be paid to the persons employed in establishments based on its profit and productivity. The act is applicable to the whole of India for all establishments which had twenty or more persons employed on any day during the year. In this article, we examine the various aspects of Payment of Bonus Act in detail. To know more about Payments of Wages Act.

Objectives of the Act

The objectives of the Bonus Act (Payment of bonus Act) are as follows: To impose a legal responsibility upon the employer of every establishment covered by the Act to pay the bonus to employees.

To designate the minimum and maximum percentage of bonus.

To prescribe the formula for calculating bonus.

To provide redressal mechanism.

Applicability of the Act

The Payment of Bonus Act implements to the establishments which fall under any of the below listed: It applies to any factory or establishment which had twenty or more workers employed on any day during the year.

The act does not apply to the non-profit making organisations.

It is not applicable to establishments such as LIC, hospitals which are excluded under Section 32. It is not applicable to establishments where employees have signed an agreement with the employer. It is not applicable to establishments exempted by the appropriate government like sick units.

Departments, Undertakings and Branches

According to the Bonus Act, any different departments or undertakings or branches of an establishment of whether located in the same place or at different areas should be considered as parts of the similar establishment for computation of bonus under the Act. A separate balance sheet regarding profit and loss of the establishment in the year had to be prepared and maintained concerning such department or undertaking, or branch should be treated as a separate establishment for computation of bonus for the year.

Eligibility for Bonus

Any employee is eligible for availing bonus if the following conditions are satisfied:

The employee receiving salary or wages up to Rs.21,000 per month

The employee engaged in any work whether skilled, unskilled, managerial, supervisory etc.

The employee who have worked not less than 30 working days in the same year.

Disqualification of Bonus

The employees cannot avail the bonus if any action taken by the management in case of dishonesty, theft, sabotage of any property of establishment, violent behaviour while on the duty within premises of the establishment.

Number of Working Days

What is the most painful punch in boxing?

A liver shot or liver punch is a punch, kick, or knee strike to the right side of the ribcage that damages the liver. Blunt force to the liver can...

Last updated Sep 13, 2022

What do you mean by withdrawal limit?

ATM Withdrawal Limit refers to the maximum limit or number of times you can use your ATM card at your own or other bank ATMs. The bank also sets a...

Last updated Jun 24, 2022

Promotion

An employee will be considered “working” in a year if the following conditions are satisfied: The employee who is under an agreement or as permitted by standing orders under the Industrial Employment (Standing Orders) Act, 1946, the Industrial Disputes Act, 1947 or any other law applicable to the establishment.

The employee during employment has taken leave with salary.

The employee who has been absent due to temporary disablement caused by accident during the work. The employee has been on maternity leave with salary in the accounting year.

Payment of Minimum and Maximum Bonus

The minimum bonus will be 8.33% of the salary during the year, or 100 rupees will be given in case of employees above 15 years and sixty rupees in the case of employees below 15 years, whichever is higher.

The maximum bonus is 20% of the salary during the accounting year.

Timeline for Payment of Bonus

The payment of bonus should be paid in cash within eight months from the end of the accounting year or within a month from the date of enforcement of the act.

Computation of Bonus

As per the Section 4 and Section 7 together with the Schedule 1 and two deal with the calculation of gross profit and available surplus out of which 67% in case of companies and 60% in other cases would be allocable surplus. To compute the available surplus the sums, so deductible from the gross profits are:

All direct taxes under Section 7

The sums which are particularised in the schedule

The allowance for investment or development in which the employer is allowed to deduct from his income under the Income Tax Act.

Available Surplus = Gross Profit – ( deduct) the following :

Depreciation is allowable in Section 32 of the Income-tax Act.

Development Allowance.

Inspectors under Section 20

Section 20 enables the relevant government to appoint Inspectors for this Act after notification in the official gazette.

Powers of inspectors:

Making an employer to furnish information.

Able to visit any establishment at any reasonable time.

Able to order certain production documents and examine the same.

Able to take extracts from the records

To examine the employers, his agent or servant or any other person found in charge of the establishment.

To execute such other powers as may be prescribed under the rules.

Duties of the Employer

The following duties to be carried out by the employer:

To estimate and pay the annual bonus as required under the Act.

Who is the father of football?

Walter Camp Walter Camp is credited with altering the rules of rugby to create the game of modern North American football we are familiar with...

Last updated Apr 9, 2019

Does 2pair beat a straight?

Both a straight and two pair represent strong poker hands in games like Texas Hold'em, Stud, and Omaha. The question is – does two pair beat a...

Last updated Apr 7, 2022

Promotion

To maintain the following registers:

The register should show the computation of allocating surplus in respective Form.

The register should be maintained with the payment of the bonus to the employees. The records should be maintained before inspection and such other information should be stored.

Rights of Employers

The following rights to be claimed out by the employers:

Right to notice any disputes relating to application or interpretation of any provision of the Act, to the Labour Court or Labour Tribunal. Right to make a valid deduction from the bonus due to an employee, such as festival bonus paid and financial loss created by the misbehaviour of the workers. Right to take the bonus of an employee, who has been dismissed from service for misbehaviour, violent behaviour, fraud, misappropriation or sabotage of any property of the establishment.

Rights of Employees

The following rights to be claimed out by the employees:

Right to claim bonus due under the Act and to request an application to the Government for the redemption of bonus amount which is unpaid, within one year of its being due. Right to notice any dispute to the Labour Court/Tribunal. Employees who are not eligible for the Payment of Bonus Act, cannot raise a dispute about the bonus under the Industrial Disputes Act. Right to seek clarification and obtain information, on any item in the accounts of the establishment.

Offences and Penalties

In case of violation of the provisions under the Act or rules, then the penalty is imprisonment for six months or may impose fine of Rs.1000 or both. In case of failure to comply with the directions or requisitions made, then the penalty is imprisonment for six months or may impose fine of Rs.1000 or both. In case of offences by companies, firms, body corporate or association of individuals, its director, partner or a principal or officer responsible for the conduct of its business, should be deemed to be guilty of that offence, unless the person concerned proves that the crime was committed out of his knowledge or that he exercised all due diligence.

indiafilings.com - Payment of Bonus Act - Applicability - IndiaFilings

Is there a 100% chance?

The probability of a certain event occurring depends on how many possible outcomes the event has. If an event has only one possible outcome, the...

Last updated Apr 20, 2018

How much will my 1000 bonus be taxed?

22% The Percentage Method (or flat-rate method). Under this approach, your employer withholds 22% of your bonus for federal income tax purposes....

Last updated Dec 23, 2019

Promotion

Which country plays bet the most?

Countries That Gamble The Most Rank Country Gaming Losses Per Adult 1 Australia $1,288.00 2 Singapore $1,174.00 3 Ireland $588.00 4 Canada $568.00...

Last updated Jan 15, 2022

Promotion

How do I get my sportsbook from FanDuel out of state?

In fact, in some cases, a VPN might be your only option to access the FanDuel Sportsbook. For instance, if you're not in a state like New Hampshire...

Last updated Jun 5, 2019