Eligibility for Bonus: Can a Group D Contract Worker with a 10,500 Salary Get a Bonus?

Will an employee working as a Group D contract labor for the Department of Survey Settlement and Land Records, which comes under the Revenue Department of Karnataka and whose gross salary is 10,500, be eligible for bonus under the Payment of Bonus Act?

The Payment of Bonus Act is not applicable to government establishments.

B. Saikumar HR & Labour Relations Adviser

But, sir, the employee is working as a contract employee under the government establishment.

Since he is working as a contract labor through a contractor, he is eligible for a bonus under the Payment of Bonus Act. However, his eligibility for the bonus will be Rs. 7,000 for the whole year or as per the minimum wages, whichever is higher.

For example, if his minimum wage is Rs. 8,500 per month and he worked for the whole financial year (April to March) without any salary deductions, he would receive Rs. 8,500.

Suresh