We are a Handicraft Exporter from Jodhpur (Raj.) Our query relates to Payment of Bonus Act, 1965 as amended by Amendment Act, 2015. The query is : “Where the Basic Salary of an employee is lower than Rs. 7,000 /- pm and the Minimum Wage for the Scheduled employment in the State is also lower than Rs. 7,000/-, then is the Bonus required to be calculated compulsorily on Rs. 7,000 /- for the employee. ?” Kindly arrange to provide your expert opinion on the subject.
Dear Client,
Bonus Act applies to every factory and every establishment that employs 20 or more persons and ceiling has been raise to 7,000 which was 3500 before amendment, So now max. bonus shall be payable is 20% and min 8.33% of 7000rs. Threshold limit is also increased from 10,000rs to 21,000rs.
Means employee ranging from 7000 to 21,000 and worked for 30 day in a year are entitle to bonus.
Salary below 7k , no bonus payable.
The acts says Rs. 7000 Or the minimum wage for scheduled employment, as fixed by the appropriate Government, whichever is higher.
So, you will have to pay them 7000 compulsorily as bonus.
Also state how many labourers are there in total?
Hello,
Please note that the bonus Act applies to every every establishment that has more than 20 employees.
In your case bonus will be applicable and will have to be paid to the employees.
regards
Yes it will be 7000/- Maximum bonus will be 20 percent and minimum will be 8.33 percent of 7000/- as per the amendment in payment of bonus Act.
Bonus is to be paid on the actual wages for the year (basic + DA paid each month for the entire financial year
As per the payment of Bonus Act, employees whose wages does not exceed Rs.21000/- per month are eligible for bonus and where the wage of such an employee exceeds Rs.7000/- per month, the bonus payable to him may be calculated as if the wage is Rs.7000/- per month.
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.
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.
