Bonus act 1965

THE PAYMENT OF BONUS ACT, 1965 Objects and Scope The main object of the Payment of Bonus Act, 1965 is to maintain peace and harmony between labour and capital by allowing the employees to share the prosperity of the establishment, prescribing the minimum and maximum rates of Bonus together with the scheme of ‘Set on’ and ‘Set off’. This Act secures the right of labour to share in the profits of the establishment. Application of the Act (Section 1) 1. The Act applies to whole of India. 2. The Act applies to: (a) Every factory; (b) Every other establishment in which 20 or more persons are employed on any day during the accounting year. However, the Government may, by notification in the official gazette (OG), apply the provisions of the Act to any establishment employing more than 10 persons but less than 20, after giving 2 months notice to the employer. 3. An establishment to which the Act applies during the accounting year shall continue to be governed by the Act notwithstanding that the number of persons employed fall below 20/10, as the case may be. The Payment of Bonus Act not to apply to certain classes and employees (Section 32): The Act shall not apply to the following classes of employees. (i) Employees employed in LIC. (ii) Seamen defined in the Merchant Shipping Act. (iii) Employees registered under the Dockworkers [Regulation of employment] Act, 1948. (iv) Employees employed by an establishment under the authority of Central Government/ State Government or Local ...

The Payment of Bonus Act, 1965 provides for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production. The Act applies to the persons employed in every factory and establishment employing not less than 20 persons on any day during the accounting year. The establishment, once covered under the Act, continues to pay bonus in accordance with the provisions of the Act, even if the number of employees falls below 20 persons subsequently. The employee becomes eligible to paid bonus under the law, irrespective of whether the terms of employment are express or employed or he is manager or a supervisor or administrative employee, if the salary or wages drawn by the employee does not exceed Rs.21,000/-per month. In the case of employees whose salary is above Rs.7,000/- and below Rs.21000/-, their salary shall be deemed as Rs.7000/- or the minimum wages fixed by the appropriate Government, whichever is higher. The employee must have also worked for at least 30 days in respect of the year in which bonus is paid. The Act is not applicable to an apprentice engaged by the employer for hire or reward. Mr. Chandrashekar Shetty is a Senior Labour Law Compliance Auditor at BCP Associates and has audited multiple client companies across India. He is also a member of our senior legal advisory practice. Previously he has worked as Deputy Controller, Manager-Industrial Relations and Industrial Relations Officer in KPTCL, Bangalore fo...

The statutory bonus in India is paid according to the bonus payment law (1965). The bonus is a deferred benefit, and some companies choose to pay it in advance. Eligibility for the bonus has been increased to include employees’ income up to INR 21,000 per month (up from INR 10,000 per month before). Increase of the premium ceiling: previously, for the calculation of the statutory bonus, a salary ceiling of INR 3,500 per month was applied (so that the salary of an eligible employee exceeded INR 3,500 per month for calculation purposes). Of the statutory bonus, bonus was calculated using a salary of INR 3,500 per month). This ceiling was increased to INR 7000 per month or the minimum wage for employees under the Minimum Wage Act 1948, whichever is greater. Basically, a statutory bonus is an amount given to an employee for good performance. Moreover, this can be paid to an employee during a certain time period. This is important as it helps an employee to get a better job offer. Also, it allows an employee to receive a higher salary. What is statutory bonus meaning in salary? ‘Statutory Bonus’ is the term used to refer to a bonus that is required to be paid by an employer to an employee. It is a form of incentive which is calculated using the employee’s basic salary plus a dearness allowance. The amount is then multiplied by the number of days worked by the employee during an accounting year. Statutory bonuses are awarded to employees who are eligible under the Payment of Bon...

• • I. Module-1 Introduction to Labour Law • 1.Introduction to Labour Law • 2.Constitution Of India And Law • 3.Laws Relating To Wages • 4.Laws Relating To Social Security • 5.Laws Relating To Working Hours, Conditions Of Service And Employment • 6.Laws Relating To Equality And Empowerment Of Women • 7.Prohibitive Labour Laws • 8.Laws RelatIng To Employment And Training • II. Study Notes on Employment Law • 9.Shops & Establishment Act • 10.Industrial Disputes ACT, 1947 • 11.Trade Unions ACT, 1926 • 12.Minimum Wages ACT 1948 • 13.Payment Of Wages ACT 1936 • 14.The Payment Of Bonus ACT, 1965 • 15.Payment Of Gratuity ACT, 1972 • 16.Workmen's Compensation ACT, 1923 • 17.Occupational Disease • 18.Enforcement of Act • 19.Employees' State Insurance ACT, 1948 • 20.Wage Ceiling for Coverage • 21.The Role of ESI Corporation • 22.Employees Provident Funds (And MISC. Provisions) ACT. 1952 • 23.The Employees’ Provident Fund Scheme, 1952 • 24.The Employees’ Deposit-Linked Insurance Scheme, 1976 • 25.Ethical Issues At Work Place • 14 The Payment Of Bonus ACT, 1965 Introduction In the previous unit, we dealt with the rules regarding the Workmen’s Compensation Act. Annual Bonus is an important component of wage payable to workers. This forms 8 to 10% of the total earnings of workers. As its payment can now be claimed as a legal right, it is looked upon by the working class as a great hope and expectation. Again, as real wages payable to most of the workers in India have not reached even th...

2 Solved Example on Payment of Bonus Act,1965 Payment of Bonus Act, 1965 In 1950, the Complete Stand was taken by the Labour Appellate which unfolded specifications for resolution of bonus for laborers. There was a pleading which was executed to propose that direction in 1959. The Government of India affirmed the testimonials of the Commission directed to some alterations. These recommendations by the committee regarding the Payment of Bonus Act Ordinance, 1965 was proclaimed on 29th May 1965 and to restore the said Ordinance the Payment of Bonus Bill was presented in the Parliament. The Payment of Bonus Bill was relinquished by both the Houses of Parliament but the bill secured the assent of the President on 25th September 1965. After that, it was introduced in the Statute Book as The Payment of Bonus Act, 1965. Why the Payment of Bonus Act, 1965 was the act introduced? The Payment of Bonus Act, 1965 is to proclaim the progression to deliver a rightful responsibility on the employers to distribute their profits with their employees on the foundation of their performance in the organization or on the source of their productivity. Applicability of the Payment of Bonus Act, 1965 The Act extended to the entire country and is implemented to all industries and establishments in which there were 20 or more persons are employed on any day throughout an accounting year. Also, the act is applicable to the factories where there are less than 20 workers, but not less than 10 workers ...

• • I. Module-1 Introduction to Labour Law • 1.Introduction to Labour Law • 2.Constitution Of India And Law • 3.Laws Relating To Wages • 4.Laws Relating To Social Security • 5.Laws Relating To Working Hours, Conditions Of Service And Employment • 6.Laws Relating To Equality And Empowerment Of Women • 7.Prohibitive Labour Laws • 8.Laws RelatIng To Employment And Training • II. Study Notes on Employment Law • 9.Shops & Establishment Act • 10.Industrial Disputes ACT, 1947 • 11.Trade Unions ACT, 1926 • 12.Minimum Wages ACT 1948 • 13.Payment Of Wages ACT 1936 • 14.The Payment Of Bonus ACT, 1965 • 15.Payment Of Gratuity ACT, 1972 • 16.Workmen's Compensation ACT, 1923 • 17.Occupational Disease • 18.Enforcement of Act • 19.Employees' State Insurance ACT, 1948 • 20.Wage Ceiling for Coverage • 21.The Role of ESI Corporation • 22.Employees Provident Funds (And MISC. Provisions) ACT. 1952 • 23.The Employees’ Provident Fund Scheme, 1952 • 24.The Employees’ Deposit-Linked Insurance Scheme, 1976 • 25.Ethical Issues At Work Place • 14 The Payment Of Bonus ACT, 1965 Introduction In the previous unit, we dealt with the rules regarding the Workmen’s Compensation Act. Annual Bonus is an important component of wage payable to workers. This forms 8 to 10% of the total earnings of workers. As its payment can now be claimed as a legal right, it is looked upon by the working class as a great hope and expectation. Again, as real wages payable to most of the workers in India have not reached even th...

2 Solved Example on Payment of Bonus Act,1965 Payment of Bonus Act, 1965 In 1950, the Complete Stand was taken by the Labour Appellate which unfolded specifications for resolution of bonus for laborers. There was a pleading which was executed to propose that direction in 1959. The Government of India affirmed the testimonials of the Commission directed to some alterations. These recommendations by the committee regarding the Payment of Bonus Act Ordinance, 1965 was proclaimed on 29th May 1965 and to restore the said Ordinance the Payment of Bonus Bill was presented in the Parliament. The Payment of Bonus Bill was relinquished by both the Houses of Parliament but the bill secured the assent of the President on 25th September 1965. After that, it was introduced in the Statute Book as The Payment of Bonus Act, 1965. Why the Payment of Bonus Act, 1965 was the act introduced? The Payment of Bonus Act, 1965 is to proclaim the progression to deliver a rightful responsibility on the employers to distribute their profits with their employees on the foundation of their performance in the organization or on the source of their productivity. Applicability of the Payment of Bonus Act, 1965 The Act extended to the entire country and is implemented to all industries and establishments in which there were 20 or more persons are employed on any day throughout an accounting year. Also, the act is applicable to the factories where there are less than 20 workers, but not less than 10 workers ...

THE PAYMENT OF BONUS ACT, 1965 Objects and Scope The main object of the Payment of Bonus Act, 1965 is to maintain peace and harmony between labour and capital by allowing the employees to share the prosperity of the establishment, prescribing the minimum and maximum rates of Bonus together with the scheme of ‘Set on’ and ‘Set off’. This Act secures the right of labour to share in the profits of the establishment. Application of the Act (Section 1) 1. The Act applies to whole of India. 2. The Act applies to: (a) Every factory; (b) Every other establishment in which 20 or more persons are employed on any day during the accounting year. However, the Government may, by notification in the official gazette (OG), apply the provisions of the Act to any establishment employing more than 10 persons but less than 20, after giving 2 months notice to the employer. 3. An establishment to which the Act applies during the accounting year shall continue to be governed by the Act notwithstanding that the number of persons employed fall below 20/10, as the case may be. The Payment of Bonus Act not to apply to certain classes and employees (Section 32): The Act shall not apply to the following classes of employees. (i) Employees employed in LIC. (ii) Seamen defined in the Merchant Shipping Act. (iii) Employees registered under the Dockworkers [Regulation of employment] Act, 1948. (iv) Employees employed by an establishment under the authority of Central Government/ State Government or Local ...

The Payment of Bonus Act, 1965 provides for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production. The Act applies to the persons employed in every factory and establishment employing not less than 20 persons on any day during the accounting year. The establishment, once covered under the Act, continues to pay bonus in accordance with the provisions of the Act, even if the number of employees falls below 20 persons subsequently. The employee becomes eligible to paid bonus under the law, irrespective of whether the terms of employment are express or employed or he is manager or a supervisor or administrative employee, if the salary or wages drawn by the employee does not exceed Rs.21,000/-per month. In the case of employees whose salary is above Rs.7,000/- and below Rs.21000/-, their salary shall be deemed as Rs.7000/- or the minimum wages fixed by the appropriate Government, whichever is higher. The employee must have also worked for at least 30 days in respect of the year in which bonus is paid. The Act is not applicable to an apprentice engaged by the employer for hire or reward. Mr. Chandrashekar Shetty is a Senior Labour Law Compliance Auditor at BCP Associates and has audited multiple client companies across India. He is also a member of our senior legal advisory practice. Previously he has worked as Deputy Controller, Manager-Industrial Relations and Industrial Relations Officer in KPTCL, Bangalore fo...

The statutory bonus in India is paid according to the bonus payment law (1965). The bonus is a deferred benefit, and some companies choose to pay it in advance. Eligibility for the bonus has been increased to include employees’ income up to INR 21,000 per month (up from INR 10,000 per month before). Increase of the premium ceiling: previously, for the calculation of the statutory bonus, a salary ceiling of INR 3,500 per month was applied (so that the salary of an eligible employee exceeded INR 3,500 per month for calculation purposes). Of the statutory bonus, bonus was calculated using a salary of INR 3,500 per month). This ceiling was increased to INR 7000 per month or the minimum wage for employees under the Minimum Wage Act 1948, whichever is greater. Basically, a statutory bonus is an amount given to an employee for good performance. Moreover, this can be paid to an employee during a certain time period. This is important as it helps an employee to get a better job offer. Also, it allows an employee to receive a higher salary. What is statutory bonus meaning in salary? ‘Statutory Bonus’ is the term used to refer to a bonus that is required to be paid by an employer to an employee. It is a form of incentive which is calculated using the employee’s basic salary plus a dearness allowance. The amount is then multiplied by the number of days worked by the employee during an accounting year. Statutory bonuses are awarded to employees who are eligible under the Payment of Bon...