What are the main provisions of Payment of Bonus Act?

What are the main provisions of Payment of Bonus Act?

THE PAYMENT OF BONUS ACT, 1965 The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act. The maximum bonus including productivity linked bonus that can be paid in any accounting year shall not exceed 20% of the salary/wage of an employee under the section 31 A of the Act.

What are the main features of Payment of Bonus Act 1965?

The act prescribes for the minimum bonus, that is 8.33% of the employee’s Salary/wages, which is the least percent mandatorily to be paid by every establishment or organisation covered by the act, (Section 10 of the Act); on the other hand, the maximum amount of bonus shall not exceed, 20% of the salary/wages of the …

What is bonus under Payment of Bonus Act?

The Payment of Bonus Act, 1965 provides for a minimum bonus of 8.33 percent of wages. 3,500 per month and the payment is subject to the stipulation that the bonus payable to employees drawing wages or salary not exceeded to Rs. 10000 per month would be calculated as if their salary or wages is Rs. 3,500 per month.

What are the provisions under the Payment of Gratuity Act 1972?

The Act gives a statutory right of gratuity to all the employees, who have rendered five years’ continuous service and whose services stand terminated after coming into force of the Act on account of superannuation, or retirement, or resignation, or death or disablement.

Which section of Payment of Bonus Act 1965 disqualified for bonus?

An employee employed through contractors on building operations is not entitled to bonus (Section 32). An employee who is dismissed from the service on the ground of misconduct as mentioned in Section 9, is disqualified for any bonus and not merely for bonus of the accounting year in which he is dismissed.

What is mean by set on condition as per Payment of Bonus Act 1965?

Excess allocable surplus
Excess allocable surplus remain after paying the maximum bonus of 20% on the wage or salary of the employee, Should be carried forward to the next following year to be utilized for the purpose of payment of bonus in case of the shortage of the allocable surplus or losses occur. This is called as Set-On.

What is bonus and the describe the provisions of bonus?

Every year, every employer shall be bound to pay bonus to every employee. a minimum bonus which shall be 8.33% cent of the salary or wage earned by the employee during the accounting year or 100/- rupees, whichever is higher. Bonus shall be payable in case of profits or losses in the accounting year.

What is the main purpose of Gratuity Act?

The Payment of Gratuity Act,1972 was enacted with sole objective of providing gratuity i.e., a monetary award given for services rendered to the employees working in the factories, oilfields, mines, plantations, railway companies, shops or other establishments upon their superannuation (e.g.,old age retirement amount.

Does the payment of Bonus Act 1965 impose any obligation on an employer to pay a minimum bonus to an employee what is the quantum of maximum bonus?

What is Payment of Gratuity Act 1965?

An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto.

What are the application and major provisions of gratuity Act?

The Act provides for payment of gratuity at the rate of 15 days wage s for each completed year of service subject to a maximum of Rs. ten lakh. In the case of seasonal establishment, gratuity is payable at the rate of seven days wages for each season.

What are the objectives of Payment of Bonus Act?

Objective: The objective of the Payment of Bonus Act is to reward the employee of the organization by sharing the profits earned and is linked to productivity. Applicable to: The Payment of Bonus Act is applicable to any establishment with 20 or more employees or any factory with 10 or more employees.

What was the purpose of the Bonus Act of 1965?

This Act of 1965 is applicable throughout the entire Union of India [1]. The objective of this legislation is to ensure payment of bonus to employees of certain establishments, with respect to the profits earned or the production/productivity matters concerned therewith, in the duration of a particular accounting year.

What was the maximum percentage for the payment of bonus?

percentage for Calculation of bonus: 8.33% minimum or 20% maximum. The Payment of Bonus Act, 1965 is the principal act for the payment of bonus to the employees which was formed with an objective for rewarding employees for their good work for the organization.

What do you mean by payment of Bonus Act?

The Payment of Bonus Act For services rendered, employees of any profit-making organization are entitled to monetary compensation. Bonus is a form of monetary incentive that is paid by the employer to his/her employee.

When does an employee get a bonus in India?

Eligibility of Bonus : An employee will be entitled only when he has worked for 30 working days in that year. Sec. 8 Payment of Minimum Bonus : 8.33% of the salary or Rs.100 (on completion of 5 years after 1st Accounting year even if there is no profit). Sec. 10 Eligible Employees: – Employees drawing wages upto Rs.10000/- per month or less.