The document summarizes key sections of the Payment of Wages Act of 1936 in India. It outlines 4 chapters that cover introductions and definitions, payment and deductions of wages, authorities under the act, and miscellaneous provisions. Some of the important points summarized are that employers are responsible for paying wages on time, wage periods cannot exceed one month, fines cannot be imposed without approval and notice, and deductions can only be made in certain situations like absence from work. The act also establishes authorities to oversee enforcement and penalties for non-compliance.
A bonus payment is usually made to employees in addition to their base salary as part of their wages or Salary. While the base salary usually is a fixed amount per month, bonus payments more often than not vary depending on known criteria, such as the annual turnover, or the net number of additional customers acquired, or the current value of the stock of a public company. Thus bonus payments can act as incentives for managers attracting their attention and their personal interest towards what is seen as gainful for their companies' economic success. There are widely‐used elements of pay for performance and working well in many instances, including when a fair share of an employees participation in the success of a company is desired. There are, however, problematic instances, most notably when bonus payments are high. When they are tied to possibly short-lived figures such as an increase in monthly turnover, or cash flow generated from an isolated marketing action, such figures often do not reflect a solid reliable win for a company, and they certainly do not reflect a manager's lasting efforts to the company's best. On the contrary, such figures are prone to being adjusted or even manipulated to the benefit of those employees who are responsible for reporting them, while they are already planning their leave with a golden handshake.
The Payment of Bonus act, 1965. this PPT has inclusion recent amendments and is done from the view point of students. If anything has been missed out, do let us know through comments.
ThankYou
BONUS ACT BASICS
A bonus is an extra amount of money that is added to someone's pay, usually because they have worked very hard.
The practice of paying bonus in India appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917.
Dear Seniors & Friends,
Sharing the updated PPT on "Provident Fund & MP Act 1952" of India. Kindly have a look on the Same & Share your valuable feedback & suggestion. If you found any mistake kindly update me for the modification the same.
Regards,
Anshu Shekhar Singh
Mob: 9999 844 355
Employees’ provident funds and Miscellaneous Provisions Act, 1952kushnabh chhabra
Useful for industry practitioners and students. Crux of the act has been assembled and presented in plain and lucid manner.
Consists of operational part of the act and can be very handy for auditors as well.
A bonus payment is usually made to employees in addition to their base salary as part of their wages or Salary. While the base salary usually is a fixed amount per month, bonus payments more often than not vary depending on known criteria, such as the annual turnover, or the net number of additional customers acquired, or the current value of the stock of a public company. Thus bonus payments can act as incentives for managers attracting their attention and their personal interest towards what is seen as gainful for their companies' economic success. There are widely‐used elements of pay for performance and working well in many instances, including when a fair share of an employees participation in the success of a company is desired. There are, however, problematic instances, most notably when bonus payments are high. When they are tied to possibly short-lived figures such as an increase in monthly turnover, or cash flow generated from an isolated marketing action, such figures often do not reflect a solid reliable win for a company, and they certainly do not reflect a manager's lasting efforts to the company's best. On the contrary, such figures are prone to being adjusted or even manipulated to the benefit of those employees who are responsible for reporting them, while they are already planning their leave with a golden handshake.
The Payment of Bonus act, 1965. this PPT has inclusion recent amendments and is done from the view point of students. If anything has been missed out, do let us know through comments.
ThankYou
BONUS ACT BASICS
A bonus is an extra amount of money that is added to someone's pay, usually because they have worked very hard.
The practice of paying bonus in India appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917.
Dear Seniors & Friends,
Sharing the updated PPT on "Provident Fund & MP Act 1952" of India. Kindly have a look on the Same & Share your valuable feedback & suggestion. If you found any mistake kindly update me for the modification the same.
Regards,
Anshu Shekhar Singh
Mob: 9999 844 355
Employees’ provident funds and Miscellaneous Provisions Act, 1952kushnabh chhabra
Useful for industry practitioners and students. Crux of the act has been assembled and presented in plain and lucid manner.
Consists of operational part of the act and can be very handy for auditors as well.
Payment of Wages Act, 1936 - India
Introduction
wages
responsibility for payment of wages
fixation of wages
time of payment of wages
deductions
fines
claims
Appeal
penalty
references
Gratuity is an old age retiral social security
benefit. It is a lump sum payment made by an
employer to an employee in consideration of
his past service when the employment is
terminated. In the case of employment coming
to an end due to retirement or superannuation,
it enables the affected employee to meet the
new situation which quite often means a
reduction in earnings or even total stoppage of
earnings. In the case of death of an employee,
it provides much needed financial assistance
to the surviving members of the family. Gratuity
schemes, therefore, serve as instruments of
social security and their significance in a
developing country like India where the general
income level is low cannot be over emphasised.
Presentation will be useful for industry practitioners, students as well as auditors. It provides a quick and easy reference to all the operational provisions of the act.
2. Chapter 1 Introduction, Objects,
(section 1 & 2) Applications and
Definitions
Chapter 2 Payment and
(section 3 to 13) Deduction of wages
Chapter 3 Authorities under the Act
(section 14 to 19)
Chapter 4 Miscellaneous
(section 20 to 26)
3. . Short title, extent, commencement and
1
application.-
This Act may be called the Payment of Wages Act,
1936.
2. It extends to the whole of India.
4. In this Act, unless there is anything repugnant in the
subject or context,
“EMPLOYED PERSON" includes the legal
representative of a deceased employed person;
“EMPLOYER" includes the legal representative of
a deceased employer
5. “WAGES” means all remunerations capable
of being expressed in terms of money, which would if the
terms of the contract of employment, expressed of implied,
were full filled, be payable to person employed irrespective
of his employment or of work done in such employment
and includes house rent allowances.
6. Every employer shall be responsible for the payment to
persons employed by him of all wages required to be paid
under this Act:
Provided that, in the case of persons employed
(otherwise than by a contractor)—
(a) in factories, if a person has been named as
the manager of the factory under section 7 of the Factories
Act, 1948.
(b) in industrial or other establishments, if
there is a person responsible to the employer for the
supervision and control of the industrial or other
establishments.
7. (c) upon railways (otherwise than in factories),
if the employer is the railway administration and the
railway administration has nominated a person in this
behalf for the local area concerned;
the person so named, the person so responsible to the
employer, or the person so nominated, as the case may be,
[shall also be responsible] for such payment.
8. Fixation of wage-periods.-
(1) Every person responsible for
the payment of wages under section 3 shall fix periods (in
this Act referred to as wage-periods) in respect of which
such wages shall be payable.
(2) No wage-period shall exceed
one month.
9. Time of payment of wages.-
The wages of every person
employed upon or in—
(a) any railway, factory or [industrial
or other establishment] upon or in which less than one
thousand persons are employed, shall be paid before the expiry
of the seventh day,
(b) any other railway, factory or
[industrial or other establishment], shall be paid before the
expiry of the tenth day, after the last day of the wage-period in
respect of which the wages are payable.
10. Wages to be paid in current coin or
currency notes. All wages shall be paid in current coin or
currency notes or in both
11. (1) No fine shall be imposed on any
employed person save in respect of such acts and omissions on his part
as the employer, with the previous approval of the State Government
or of the prescribed authority, may have specified by notice under sub-
section (2).
(2) A notice specifying such acts and
omissions shall be exhibited in the prescribed manner on the premises
in which the employment is carried on or in the case of person
employed upon a railway (otherwise than in a factory), at the
prescribed place or places.
12. (3) No fine shall be imposed on any
employed person until he has been given an opportunity of showing
cause against the fine, or otherwise than in accordance with such
procedure as may be prescribed for the imposition of fines.
(4) The total amount of fine which may
be imposed in any one wage-period on any employed person shall not
exceed an amount equal to [three per cent.] of the wages payable to
him in respect of that wage-period.
(5) No fine shall be imposed on any
employed person who is under the age of fifteen years.
13. Sec 7(1) says that every payment made by the employed person to the employer
or his agent shall, for the purposes of this Act, be deemed to be deduction from
wages.
It also lays down that any loss of wages resulting from any imposition, upon a
person, shall not be deemed to be a deduction from wages.
14. (1) Deductions may be made under
section 7 only on account of the absence of an employed person from
the place or places where, by the terms of his employment, he is
required to work, such absence being for the whole or any part of the
period during which he is so required to work.
(2) The amount of such deduction shall
in no case bear to the wages payable to the employed person in respect
of the wage-period for which the deduction is made a larger
proportion than the period for which he was absent bears to the total
period, within such wage period, during which by the terms of his
employment, he was required to work:
15. A deduction under section 7 shall not exceed the
amount of the damage or loss caused to the employer by the neglect or
default of the employed person.
A deduction shall not be made under (2) of
section 7 until the employed person has been given an opportunity of
showing cause against the deduction, or otherwise than in accordance
with such procedure as may be prescribed for the making of such
deductions.
16. All such deductions and all realizations
thereof shall be recorded in a register to be kept by the person
responsible for the payment of wages under section 3 in such form as
may be prescribed.
17. A deduction of section 7 shall not be
made from the wages of an employed person, unless the house-
accommodation amenity or service has been accepted by him, as a
term of employment or otherwise, and such deduction shall not
exceed an amount equivalent to the value of the house-accommodation
amenity or service supplied .
18. Deductions under section 7 shall be subject to the following
conditions, namely:--
(a) recovery of an advance of money
given before employment began shall be made from the first
payment of wages in respect of a complete wage-period, but no
recovery shall be made of such advances given for travelling
expenses;
recovery of an advance of money given after employment began
shall be subject to such conditions as the State Government may
impose;
(b) recovery of advances of wages not
already earned shall be subject to any rules made by the State
Government regulating the extent to which such advances may be
given and the installments by which they may be recovered.
19. Deductions for recovery of loans
granted under section 7 shall be subject to any rules made by the State
Government regulating the extent to which such loans may be granted
and the rate of interest payable thereon.
20. Deductions under section 7 shall be
subject to such conditions as the State Government may impose.
21. Inspector [sec 14]
An Inspector of factory appointed under sec 8(1) of Factory Act shall be an
Inspector for the purpose of this Act in respect of all factories within the
local limits of assigned to him.
22. Sec 20(1) of the act makes contravention of the provisions of the Act, by any
person responsible for the payment of wages to an employed person,
punishable with fine which shall not be less than one thousand five hundred
rupees but which may extend to seven thousand five hundred rupees.
23. Any contract or agreement, whether
made before or after the commencement of this Act, whereby an
employed person relinquishes any right conferred by this Act shall be
null and void in so far as it purports to deprive him of such right.