Hi
As per bonus act any employees whose basic+da less than Rs.10000/- you have to pay bonus provided he should complete 30 days.
THE PAYMENT OF BONUS ACT, 1965 - FAQ
What is the Object of the Payment of Bonus Act, 1965?: The object of the Act is to maintain peace and harmony between labour and capital by allowing the employees to share the prosperity of the establishment reflected by the profits earned by the contributions made by capital, management and labour.
To which establishments is the Act applicable?: The Act is applicable to:
(a) every factory
(b) every other establishment employing 20 or more persons.
The Government can, however, apply the Act to any establishment employing less that 20 but not less than 10 persons. An establishment to which the Act applies shall continue to be governed by the Act irrespective of any fall in the number of person employed therein. {Section 1}
Are the establishments in public sector covered by the Act?: According to sub-section (2) of Section 20, save as otherwise provided in sub-section (1), nothing in the Act shall apply to the employees employed by any establishment in public sector. By the said sub-section (1) the provisions of the Act are made applicable in relation to an establishment in public sector which sells any goods produced or manufactured by it or renders any services in competition with an establishment in private sector and earns income from such sale or services or both an quantified in the said sub-section.
Who are entitled to be paid bonus?: Every employee who is drawing a salary or wage upto10000.00 per month (w.e.f. 1-4-2006) and who has worked for minimum period of 30 days in a year is entitled to be paid bonus. {Section 2(13) & 8}
Regards
Eswar.K
From India, Chennai
46As per bonus act any employees whose basic+da less than Rs.10000/- you have to pay bonus provided he should complete 30 days.
THE PAYMENT OF BONUS ACT, 1965 - FAQ
What is the Object of the Payment of Bonus Act, 1965?: The object of the Act is to maintain peace and harmony between labour and capital by allowing the employees to share the prosperity of the establishment reflected by the profits earned by the contributions made by capital, management and labour.
To which establishments is the Act applicable?: The Act is applicable to:
(a) every factory
(b) every other establishment employing 20 or more persons.
The Government can, however, apply the Act to any establishment employing less that 20 but not less than 10 persons. An establishment to which the Act applies shall continue to be governed by the Act irrespective of any fall in the number of person employed therein. {Section 1}
Are the establishments in public sector covered by the Act?: According to sub-section (2) of Section 20, save as otherwise provided in sub-section (1), nothing in the Act shall apply to the employees employed by any establishment in public sector. By the said sub-section (1) the provisions of the Act are made applicable in relation to an establishment in public sector which sells any goods produced or manufactured by it or renders any services in competition with an establishment in private sector and earns income from such sale or services or both an quantified in the said sub-section.
Who are entitled to be paid bonus?: Every employee who is drawing a salary or wage upto10000.00 per month (w.e.f. 1-4-2006) and who has worked for minimum period of 30 days in a year is entitled to be paid bonus. {Section 2(13) & 8}
Regards
Eswar.K
From India, Chennai
Dear Mr. Eswar,
Thanks, for a very informative response.
I have one more query as below regarding bonus:
We have only 16 employees currently & as per our information for an IT company as per Guj Labour laws we have to give bonus to all employees without consideration of no. of employees (i.e. 20 or more emp.) as you have explained above.
Means for IT company no. of employees are not taken into consideration for bonus purpose as per Guj Govt. Labour laws. & all should be given bonus irrespective of no. of employees.
So is that true?
Regards
Deepak Tripathi
M: 9904013590
Ahmedabad,
Gujarat
From India, Mumbai
Thanks, for a very informative response.
I have one more query as below regarding bonus:
We have only 16 employees currently & as per our information for an IT company as per Guj Labour laws we have to give bonus to all employees without consideration of no. of employees (i.e. 20 or more emp.) as you have explained above.
Means for IT company no. of employees are not taken into consideration for bonus purpose as per Guj Govt. Labour laws. & all should be given bonus irrespective of no. of employees.
So is that true?
Regards
Deepak Tripathi
M: 9904013590
Ahmedabad,
Gujarat
From India, Mumbai
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THE PAYMENT OF BONUS ACT.doc