Dear All,
under payment of Bonus act whether contracts labours are eligible for bonus. if yes whether is it compulsory to pay the bonus the contract labour. If not what is the penal provision under the act.

11th February 2010 From India, Mumbai

Manager - Compliances, Il&fs Property
Project Engineer
+5 Others

Dear Swamy

Whoever it is the Contractor also gots the profit, since he is taking profit, he too eligible to pay the Bonus to it's employees under Normal Practice. Here, the Principal Employer has to ensure whether the Bonus is paid to the Contract Employees or not. In the Wage Pattern itself, the Principal Employer has to make the break up which is inclusive of Bonus. The Bonus Act may talks about the Infancy Period ie, any organisation's age is below 5 years that has been exempted to pay Bonus, but in the same act it is clearly mentioned that, if the Organisation starts to getting Profit within 2 years, then it has to pay the Bonus to its employees from the Origin with Interest, that is why? Most of the Organisations are paying bonus from the starting Budget Year itself.

Since the Contractor is the Contractor to the Principal Employer, the Parent of the Contractor shall be Contract Labour Act (Regulation & Abolition). So you have to pay the Bonus to your Contract Employees, as a Principal Employer, you should ensure with the Contractor, whether the Bonus has been disbursed or not.

Thanks & Regards
11th February 2010
kindly quote the exact govt orders under which bonus has to be paid to the contract labour. me as a principal employer has to get sanction from our account department to reimburse the bonus paid by the contractor. for orders please
26th December 2010 From India, Tiruchchirappalli
Definetly , You should pay the bonus to the contract labour, if works more than 30 days in the respective financial year. Regards Manoj Prasad Gurgaon
30th December 2010 From India, Mumbai
Please resolve the following queries:
1. An establishment is exempted from paying bonus in its infancy period (i.e. first 5 years). here, are we talking about the contractor's establishment or the Principal Employer's?
2. Somebody said in the above post that any employee who has worked for more than 30 days in a year is eligible for bonus. Suppose an employee starts working in PE's factory from September and Bonus is paid in October, when will this employee be paid bonus for the first time?
3. What are the wage limits for eligibility and calculation of bonus?
25th October 2012 From India
Dear Team
The answer of your query is,
1. For brief description of infancy period, pls. refer the Payment of Bonus Act.
2. Bonus alwasy be calculated for the FY Apr.- Mar. only & will be paid within 8 months after closing the FY. Hence, eligibility of an employee will also be calculated within the FY only.
3. Wage limit for eligibility of Bonus is Rs.10000/- (Basic+DA) per month, while calculation must be calculated up to max. wages (Basic+DA) of 3500/- per month.
26th October 2012 From India, Mumbai
Dear Seniors,
Can you suggest me, if an contract employee receive salary after deduction ESI & PF. At the time of full & final will he get Bonus as per bonus act if bonus is not written in his agreement.
Ashish K.
16th April 2013 From India, Delhi
Dear All, Greeting of the day.
I just want to know weather the contract employees is eligible for attendance bonus hence their wage calculating by 26 days. and they are asking for OT also.
Expecting your valuable replies. They are in not manufacturing but into operations & maintenance.
6th September 2013 From India, Hyderabad
Dear All ,
I f the principal Employer is liable for Payment of Bonus, the contractor has to maintain a bonus register or the principal employer includes the contract labour and maintain the register .please ?
22nd December 2013 From India, Chennai
Dear Friend.
Please be sure that bonus to the contracted labour is not at all responsibility of principal employer. The employees of contractor cannot be treated at par for the purposes of bonus. It has been held in courts judgements.
28th May 2014 From India, Faridabad

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