This document provides an overview of the Payment of Bonus Act 1965 in India. Some key points:
- The Act requires companies with 20+ employees to pay annual bonuses to eligible employees based on profits or productivity. Eligible employees earn less than 10,000 rupees per month.
- Calculation of available surplus funds and allocable surplus determine the bonus amount payable. Minimum bonus is 8.33% of wages, maximum is 20%.
- Amendments in 2007 raised the eligibility limit to 10,000 rupees per month and calculation ceiling to 3,500 rupees per month.
- Several court cases have clarified provisions around what is considered "wages", treatment
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.
A detailed study of Apprenticeship Act, 1961 of India, covering the entire 3 chapters on Definitions, Duties of an employer and Obligations of an Apprentice, Period, Leave entitlements and Termination of Contract etc using an analogy of Harry Potter. Useful for law students, HR students and MBA students.
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.
A detailed study of Apprenticeship Act, 1961 of India, covering the entire 3 chapters on Definitions, Duties of an employer and Obligations of an Apprentice, Period, Leave entitlements and Termination of Contract etc using an analogy of Harry Potter. Useful for law students, HR students and MBA students.
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
This Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed. Six thousand five hundred rupees per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organization, the Central Government may after every five years, by notification in the Official Gazette, specify.
DEFINITION OF INDUSTRIAL DISPUTES BY THE ID ACT, VARIOUS FORMS OF INDUSTRIAL DISPUTES, WITH THERE EXPLANATIONS ,CAUSES OF INDUSTRIAL DISPUTES AND THERE EFFECTS ALSO(POSITIVE AND NEGATIVE), THE MOST IMPORTANT IS THE PREVENTIVE MEASURES AND THE FORMS OF SETTLEMENT OF VARIOUS DISPUTES IN AN INDUSTRY LEVEL WITH PROPER EXAMPLE AND PROCESS OF ALMOST ALL THE FORMS OF DISPUTES SETTLEMENT INCLUDING CONSULTATIVE MACHINERY.
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
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
This Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed. Six thousand five hundred rupees per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organization, the Central Government may after every five years, by notification in the Official Gazette, specify.
DEFINITION OF INDUSTRIAL DISPUTES BY THE ID ACT, VARIOUS FORMS OF INDUSTRIAL DISPUTES, WITH THERE EXPLANATIONS ,CAUSES OF INDUSTRIAL DISPUTES AND THERE EFFECTS ALSO(POSITIVE AND NEGATIVE), THE MOST IMPORTANT IS THE PREVENTIVE MEASURES AND THE FORMS OF SETTLEMENT OF VARIOUS DISPUTES IN AN INDUSTRY LEVEL WITH PROPER EXAMPLE AND PROCESS OF ALMOST ALL THE FORMS OF DISPUTES SETTLEMENT INCLUDING CONSULTATIVE MACHINERY.
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
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
Implementation of “the payment of bonus (amendment) act, 2015”IJARIIT
As per the payment of Bonus at 1965, 1st five years, Bonus is paid based on profit earned by the company during
the financial year. Post 5 year i.e financial years of every organization having more than 10 employees required to pay a
minimum bonus of 8.33% was assured irrespective of profit earned or not. If the profitability of the organization is
substantially high & more than allocable surpluses in that case orgnisation have to pay maximum bonus is fixed at 20% and
the balance is carried forward as “set-on” to cater the emergency for next years. As per the Bonus act amendment 2015, the
bonus increase was declared retrospectively. Once the bonus is paid based on profit, after negotiation with employee’s
representative, making it retrospective will make the additional burden on the employer. Therefore, the same is not fair and
stay on retrospective effect is granted by Karnataka, Madras and few other High Courts. In addition, the bonus calculation
is linked to Minimum wage. Since the minimum wage differs from state-to-state; within the state zone-to-zone and industryto-
industry, bonus payment based on minimum wage will not be uniform within the state, region, and industry. Therefore,
linking of minimum wage act with bonus act will lead to disputes in the industry.
An introduction to the most important labour laws in India. The presentation gives just an idea of what is the Act all about. It acts like a handbook to a budding HR executive.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
2. 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.
In certain cases of industrial disputes demand for payment of
bonus was also included. In 1950, the Full Bench of the Labour
Appellate evolved a formula for determination of bonus.
Act to provide for the payment of bonus to persons employed in
certain establishments on the basis of profits or on the basis of
production or productivity and for matters connected therewith.
3. It extends to the whole of India
Every establishment in which twenty or more persons are
employed on any day during an accounting year.
Factory ( As Defined in factories Act)
very other establishment in which 20 or more persons are employed
on any day during any accounting yearc)Public sector(Share capital
held by Govt>40%)
Note : For some establishment POBA will apply even if the number
of employees are below 20 under two conditions,
oMinimum of 10 employees
oNotified in gazette.
4. All the employees
Who works for 30 days (or) more.
Salary less than (or) equal to 10,000.
Note : Working days includes Casual leaves, sick
leaves………….etc.
5. According to Section 32 of the Act
General insurance & Life insurance business and the employees
Seamen as defined in clause (42) of Section 3 of the Merchant
Shipping Act, 1958;
Employees employed by any department of Central Government or a
State Government or a local authority;
Employed by The Indian Red Cross Society
Universities and other educational institutions
Institutions (including hospitals, chambers of commerce and social
welfare institutions) established not for the purpose of profit
Employees employed through contractors on building operations
Employees employed by the Reserve Bank of India
Employees employed by The Industrial Finance Corporation of
India;
And other institution mentioned under sec 32
6. Calculation of available surplus u/s 5.
oGross profit u/s 4 xxx
oLess :Prior profits u/s6 xxx
oAdd :Tax savings(previous accounting year) xxx
Available surplus xxx
According to Sec 19
[All amounts] payable to an employee by way of bonus under this Act
shall be paid in cash by his employer
Allocable Surplus
60% of Available Surplus,
67% in case of foreign companies.
7. The minimum for majors is RS 100.
The minimum for minors between 14 to 15 is RS 60
The maximum bonus payable is RS 24000 (10000*20%*12months)
The minimum bonus payable is RS 1200 (100*12) (OR) for minors
720(60*12).
Minimum u/s10 = 8.33%
Maximum u/s11 = 20%
8. Offence
Contraventions of any provisions
Default in complying with Act
Penalty
6 month’s jail and /or Rs 10,000 or both
1) An Bonus be denied to an employee on the condition that on
the day of declaration of Bonus he was not in employment ?
NO. It violates the provisions of Sec. 8 of the Act.
2) Whether a Probationer is eligible for Bonus ?
A probationer will be eligible for bonus as there is no exclusion in the
definition of ‘employee’ under the Act.
9. Bonus can be forfeited to an employee who has been dismissed
from service on grounds of fraud, theft, misappropriation, or
Damage of any property of the establishment.
Every employer shall prepare and maintain such registers, records
and other documents in such form and in such manner as may
prescribed.
The appropriate Government may, by notification on the Official
Gazette, appoint such person as it think fit to be Inspectors for the
purposes of this Act and may define the limits within which they
shall exercise jurisdiction.
10. The Cabinet in its meeting held on October 1, 2007 has approved the
Amendments to the payment of Bonus Act, 1965, which are as follows:-
i) Amendment to Section 2(13): To raise the eligibility limit for payment
of bonus from the salary or wage of Rs.3500/- to Rs.10,000 per month.
ii) Amendment to section 12: To raise the ceiling for calculation purpose
from the salary or wage of Rs.2500/- to Rs.3500/- per month, and;
iii) Deletion of section 32(vi): To cover the employees employed through
contractors on building operations .
Source: Press Information Bureau,Government of India.
12. Matter
The appellant company was making two payments of bonus every year one for the
half year ending 30th June and the other for the half year ending 31st December.
The payment was on the basis of profits earned by it and the payment was not a
condition of service and had nothing to do with any custom or festival. When the
Payment of Bonus Act, 1965 came into force.
Problem Arise from Workmen that Company stop two payment of bonus every
year
Judgment
Appellant issued a circular that as bonus was payable under law only within a
period of 8 months from the end of the, accounting year Under the Act, bonus for a
particular accounting year will have to be computed in accordance with the
provisions of the Act on the basis of the gross profits determined at the close of the
accounting year.
Binny Limited Vs Their Workmen
Date Of Judgment 15th
February, 1972
Bench Vaidyialingam, C.A Dua
In the Court Supreme Court of India
13. Institutions such as hospitals, social welfare institutions and chambers ofcommerce are intended to
be exempted under section 32 (v) (c); Maharashtra Electricity Board v. M.C. Chitale , (1981)
Overtime allowance does not form part of “wages”; Associated cement Co.Ltd. v. Their
Workmen.
Branches of an establishment are to be treated as part of the same establishment or the purpose of
computation of bonus. However, where in an accounting year, a separate-balance sheet is
maintained in respect of any branch then such branch shall be treated as a separate establishment;
Workmen, Somaiya Organnics (India) Ltd. v. Somaiya Organics (India) Ltd., 1981.
Bonus paid to trainees (not apprentices) is admissible deduction under theIncome-tax Act; Textool
Co Ltd. v. Income-Tax Officer, 1984
Employees working on part-time basis are eligible for bonus; Arun Mills Ltd. v. Dr. Chandra
Parshad C. Trivedi, 1976.
In the case of a factory which works seasonally during an accounting year working days in any
accounting year” can only mean those days of the year during which the employee concerned is
actually allowed to work; Sakhkkar Mills Mazdoor Sangh v. Gwalior Sugar Co. Ltd., 1985
Some other Cases for Understanding Act