if you want to remove an article from website contact us from top.

    what is the mode of paying bonus to the employees as specified in the act

    Mohammed

    Guys, does anyone know the answer?

    get what is the mode of paying bonus to the employees as specified in the act from screen.

    Payment of Bonus Act, 1965

    स्रोत : www.careerride.com

    Whatishumanresource.com

    Eligibility: any employee who draws salary or wage up to Rs. 21,000 is eligible for claiming bonus Bonus calculation purpose: according to the 2015 Amendment, Ceiling amount ( maximum limit ) of Rs. 7000 is considered as wage or salary for calculation of bonus. percentage for Calculation of

    The Payment of Bonus Act, 1965 - (Amendment) Bill, 2015 - Eligibility for bonus - Payment of minimum bonus

    Eligibility: any employee who draws salary or wage up to Rs. 21,000 is eligible for claiming bonusBonus calculation purpose: according to the 2015 Amendment, Ceiling amount ( maximum limit ) of Rs. 7000 is considered as wage or salary for calculation 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. It is a step forward to share the prosperity of the establishment reflected by the profits earned by the contributions made by capital, management and labour with the employees.

    Employees eligible for bonus:The Act mandates payment of bonus to employees’ whose salary or wage is up to Rs 21,000 per month.] For calculation purposes Rs.7,000 per month maximum will be taken even if an employee is drawing up to Rs.7,000 per month. (Sec. 12)Calculation of bonus with respect to certain employees. [Sec 12](2015 amendment)

    Where the salary or wage of an employee exceeds Rs.7,000/- per mensem, the bonus payable to such employee under Sec.10, or as the case may be, under Sec.11, shall be calculated as if his salary or wage were Rs.7,000/- per mensem.

    Objective of The Payment of Bonus Act, 1965

    To improve statutory liability to pay bonus [reward for good work] in case of profits or losses.

    To prescribe formula for calculating bonus

    To prescribe Minimum & Maximum percentage bonus

    To provide of set off/set on mechanism

    To provide redressal mechanism

    Definitions. Section 2 (1) "accounting year" means- (i) in relation to a corporation, the year ending on the day on which the books and accounts of the corporation are to be closed and balanced; (ii) in relation to a company, the period in respect of which any profit and loss account of the company laid before it in annual general meeting is made up, whether that period is a year or not; (iii) in any other case- (a) the year commencing on the 1st day of April; or

    (b) if the accounts of an establishment maintained by the employer thereof are closed and balanced on any day other than the 31st day of March, then, at the option of the employer, the year ending on the day on which its accounts are so closed and balanced.

    (4) "allocable surplus" means- (a) in relation to an employer, being a company (other than a banking company)] which has not made the arrangements prescribed under the Income-tax Act for the declaration and payment within India of the dividends payable out of its profits in accordance with the provisions of section 194 of that Act, 67% of the available surplus in an accounting year; (b) in any other case, 60% of such available surplus;(11) "corporation" means any body corporate established by or under any Central, Provincial or State Act but does not include a company or a co-operative society;(12) "direct tax" means- (a) any tax chargeable under- (i) the Income-tax Act;

    (ii) the Super Profits Tax Act, 1963 (14 of 1963);

    (iii) the Companies (Profits) Surtax Act, 1964 (7 of 1964);

    (iv) the agricultural income-tax law; and

    (b) any other tax which, having regard to its nature or incidence, may be declared by the Central Government, by notification in the Official Gazette, to be a direct tax for the purposes of this Act; The Payment of Bonus (Amendment) Bill, 2015

    Section 2 (13) "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding 21,000/- rupees per month in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied; (2007 amendment)(15) "establishment in private sector" means any establishment other than an establishment in public sector;(16) "establishment in public sector" means an establishment owned, controlled or managed by-

    (a) a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);

    (b) a corporation in which not less than forty per cent of its capital is held (whether singly or taken together) by-

    (i) the Government; or

    (ii) the Reserve Bank of India; or

    (iii) a corporation owned by the Government or the Reserve Bank of India;

    [Section 32] Payment of Bonus Act not to apply to certain classes of employees.

    Life Insurance Corporation ,

    The Indian Red Cross Society or any other institution of a like nature,

    Universities and other educational institutions ,

    Institutions (including hospitals, chambers of commerce and society welfare institutions) established not for purposes of profit,

    Employees employed through contractors on building operations,

    स्रोत : www.whatishumanresource.com

    Bonus Payment for Employees

    Know more about Bonus Payment for Employees at Work in India. Get information about Payment of Bonus Act, Bonus Eligibility, Applicability, Calculation of Bonus etc. in India at Paycheck.in

    Home Labour Law Work and Wages Bonus Payment

    Bonus Payment

    Know more about Bonus Payment for Employees at Work in India. Get information about Payment of Bonus Act, Bonus Eligibility, Applicability, Calculation of Bonus etc. in India at Paycheck.in

    Bonus is a reward that is paid to an employee for his good work towards the organisation. The basic objective to give bonus is to share the profit earned by the organisation amongst the employees and staff members. In India there is a principle law relating to this procedure of payment of bonus to the employees and that principle law is named as Payment of Bonus Act, 1965.

    The Payment of Bonus Act applies to every factory and establishment employing not less than 20 persons on any day during the accounting year. The establishments covered under the Act shall continue to pay bonus even if the number of employees fall below 20 subsequently.

    Eligibility: Every employee not drawing salary/wages beyond Rs. 10,000 per month who has worked for not less than 30 days in an accounting year, shall be eligible for bonus for minimum of 8.33% of the salary/wages even if there is loss in the establishment whereas a maximum of 20% of the employee’s salary/wages is payable as bonus in an accounting year. However, in case of the employees whose salary/wages range between Rs. 3500 to Rs. 10,000 per month for the purpose of payment of bonus, their salaries/wages would be deemed to be Rs. 3500.

    There are provisions and benefits for newly formed establishments as well. As per these provisions/benefits, the first five accounting years following the accounting year in which the employer sells goods/renders services, bonus is payable only in respect of the accounting year, in which profits are made but the provisions of set on and set off would not apply.

    Applicability: The Act is applicable in whole of India where 10 or more workers are working, or were working on any day of the preceding 12 months with the aid of power. Or whereon 20 or more workers are working or were working on any day of preceding 12 months without the aid of power.Calculation of bonus: Salary/wages and dearness allowance (DA) are included while calculating bonus. However, other allowances such as over-time, house rent, incentive or commission are not included.Forfeiture of Bonus: An employee who is dismissed from service on the grounds of fraud, riotous or violent behaviour at the premises of the establishment or for the theft, misappropriation or sabotage of any of the property of the establishment as mentioned in the Act. This shall not only disqualify him from receiving the bonus for the accounting year in which he was dismissed but also for the past years which were remained unpaid to him.Time limit for payment of bonus: It is mentioned in the Act that all amounts payable to an employee by the way of bonus are to be paid in cash. It is also mentioned that within 8 months from the close of the accounting year the bonus should be paid to the employees. In exception to where there is dispute regarding payment of bonus pending before an authority (Under Industrial Disputes Act) within 1 month from the date on which the award becomes enforceable or settlement comes into operation, in respect of such dispute.

    There is a proposed amendment in the Payment of Bonus Act in the year 2010, but which is still under proposal and has not come into force. The amendment bill is known as “The Payment of Bonus (Amendment) Bill, 2010” and will come into force on a date when Central Government may notify it by official gazette.

    How much does this cost in your area: Monthly pass (for the use of public passenger transportation in urban places)

    Check your Pay, Salary or Income

    with the Salary Calculator

    Fill up the Salary survey

    Know more about your salary

    Minimum Wages in India

    for all States & Union Territories

    स्रोत : paycheck.in

    Do you want to see answer or more ?
    Mohammed 14 day ago
    4

    Guys, does anyone know the answer?

    Click For Answer