THE PAYMENT OF BONUS
THE PAYMENT OF BONUS ACT, 1965 AND RULES.
Applicability
It extends to the whole of India. This act applied to every factory and every other establishment where 20 or more persons are employed on any day during an accounting year. Once the bonus act becomes applicable to an establishment which included a shop also, it will continue to apply irrespective of the fact that the number of employees working therein falls below 20 or the number specified in the nomination applying the act.
Rate Of Bonus
- Minimum= 8.33% of salary
- Maximum= 20% of salary
Note
- Salary= basic pay + DA
- Salary should not exceed 21,000/- Section 2(13)
- Should have worked at lest 30 days in the relevant year.
- Bonus to be paid Rs. 7,000/- or minimum wages for the schedule employment whichever is higher.
- No Bonus for years of loss during the first 5 years.
Registers to be maintained
- A register showing the computation of the allocable surplus.
- A register showing the set-on and set off of the allocable surplus.
- A register showing the details of the amount of bonus due to each of the employee.
- Form A, B, C
Services offered
- Providing day to day consultancy service pertaining to payment of bonus.
- Preparation and maintenance of above said registers.
- Preparation and submission of returns in Form D to the inspector so as to reach him within 30 days after the expiry of the time limit specified in section 19 for payment of bonus.
- Prepare calculation of bonus.
- Replying show cause notice issued by the inspector.
- Representing the establishment before the inspectors and appellate authorities.
THE PAYMENT OF WAGES ACT
Applicability
The Act is to regulate the payment of wages to a particular class of employed persons. The Act applies to the cost of wages to persons employed in factories or railways. It also applies to any ‘industrial or other establishment’ specified in section 2(ii). The Act can be extended to another establishment by State/Central Government.
In this act, wages means all remuneration (whether by way of salary, allowance, or otherwise) expressed in terms of money but does not include bonus which does not form part of remuneration payable, the value of house accommodation, contribution to PF, traveling allowance, or gratuity.
Time of payment of wages
The wages of every person employed to be paid When less than 1000 persons are employed shall be paid before the expiry of the 7th day of the following month. When more than 1000 workers, before the expiry of the 10th day of the following month
Registers to be maintained
- A register showing the computation of the allocable surplus.
- A register showing the set-on and set off of the allocable surplus.
- A register showing the details of the amount of bonus due to each of the employee.
- Form A, B, C
Services offered
- Providing day to day consultancy service pertaining to payment of wages.
- Maintenance of Salary Register.
- Maintenance of Deduction Register.
- Maintenance of Wage Register.
- Replying show cause notice issued by the labour officer.
- Preparation and submission of return in form IV before the 15th February.
- Representing the establishment before the inspectors and appellate authorities