The factory defined under clause section 2 of the factories act 1948.
Every establishment in which 20 or more persons employed on any day during an accounting year.
The act also applies to public sectors in some cases.
Part-time employees also included.
Previously, the maximum bonus payable was 20% of Rs 3500 per month. The minimum bonus payment was capped at 8.33% of Rs 3500 per month or Rs 100, whichever is higher. The calculation ceiling of Rs 3500 is currently doubled to Rs 7000 per month “or the minimum wage for the scheduled employment, as fixed by the appropriate Government” (whichever is higher). Therefore, the cost associated with bonus payments could be double, based on the organization’s performance.
Any such unpaid dues including Bonus amount is earned " wages" has to be paid by employer within eight months from the close of accounting year ,as per Sec.19(b)of Payment of Bonus Act.Otherwise the non payment of bonus will be treated as non payment of wages, in that situation, employer is liable to penalty under Payment of WAGES Act.
Learned consultant KM has different opinion. Kindly re- explain your opinion above for sake of understanding your view points.
Director,Future Instt. of Engg. and Management Technology
NAVTARANG HR SERVICES