Hi to all
The payment of Bonus Act 1965 speaks:
1. The act is applicable to all Industries / establishments employing 20 workmen or more. (Sec - 1 of the Act)
2. Even if at any point of time the total figure i.e. 20 workmen (employed) fall below to 20 Nos. in the establishment after introduction/ covering of Bonus payments, the employer shall have to continue hold no right to stop payment of bonus to its employees even the employed are less than 20 Nos. (Sec - 1(5) of the Act)
3. The minimum period for eligibility of bonus to any employee, is who had worked for minimum 30 days in a calender year.
4. The minimum bonus at per the said Act is 8.33% of annual Basic + DA and not on any allowances. The maximum limit payable as per the said act is 20% on Basic + DA and not on any other allowances, ( i.e. HRA, Conveyance, OT, gratuity etc). The minimum bonus payable is Rs.100.00 or 8.33% of Basic + DA which ever is more. The sealing limit of salary (Basic + DA ) on which bonus is payable is Rs.3500.00. (Sec 21 (Salaries)
(Sec - 10 Mimi mum Bonus) ( Sec - 11 Maximum bonus)
5. The employee who is drawing a salary up to Rs.10,000.00 per month and who worked for a period of 30 days in a calendar year is entitled to bonus.
6. The Bonus to be paid with in 8 months from the financial year accounts closing. (Sec - 19 for time limit for payment of bonus)
7. The newly set up industries / establishments are exempted from payment of bonus for a period of 5 years from the date of commencement of the unit.
8. A running unit when closed down and is sold to a new employer / industrialist and the name is changed, even than if the closed unit had completed the tenure of 5 years, the new employer had to make payment of bonus to its employees, they can not take the exemption of 5 years with a ply that it is a new management and a new unit.
9. Maintenance of Register, records to me maintained as per Sec - 26 of the Act, in prescribed form.
Mohan Rao
Manager HR