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Minimum wages that are fixed for workmen have some significance:
A] Minimum wages are not fixed on equation principle,namely,money
payable towards wages must be commensurate with labour output
B] Equally, minimum wages are not based on the economic principle,
namely those who are able financially, must be capable of paying
more to the workers.
C] on other hand it is based on ethical principle of pre-judging and
assessing the needs of a workman and his family as a unit and making
provision for his wages .To put it in a nutshell,minimum wages are
considered to be need-based wages,which is according to the
directive principle of our constitution.
PAYMENT OF BONUS ACT 1965
WHAT IS BONUS ?
The bonus is a reward that is paid to an employee for his or her work
dedication towards the organization amongst the employee and staff
members.
What is payment of bonus act ?
The payment of bonus act appilies to every factor and establishment
which employs not less than 20 perons on any day during the
accounting year .The establishments covered under the Act shall
continue to pay the bonus even if the no of employees falls below 20
subsequently.
Bonus is to be paid within 8 months of closing the book of accounts.
APPLICABILITY OF PAYMENT OF
BONUS ACT
THE PROVISION OF THIS ACT APPLIES TO THE FOLLOWING:
The factory defined under clause section 2 of the factories act 1948.
Every establishment in which 20 or more persons employed on any day during an
accounting year.
The act also applies to public sector in some cases
Part-time employees are also included
When is the employee eligible for
the bonus ??
Every employee drawing not less than Rs.21,000 per month and who has worked for not
less than 30 days in an accounting year shall be eligible for the bonus .
Every employee will be entitled to be paid by his employer in an accounting year ,bonus,in
accordance with the provisions of this act ,provided he has worked in the establishment for
not less than 30 years working days in that year.
When an employee is not eligible for the statutory bonus but the company wants to share
bonus, it can be given as ex-gratia
EXEMPTED ESTABLISHMENTS
The payment of bonus act will NOT APPLY to the following section of employees:
The employees of life insurance company
Seamen defined under clause of 42 of the merchant shipping act 1958
Employees who registered or listed under the workers act 1948 and employed by the registered or listed
employers.
The employees of any industry controlled by central or state government .
Employees from the Education institutions ,institutions not for profit.
Employees employed by the contractor on building operations
RBI that is RESERVE BANK OF INDIA employees
The employees of unland water transport establishment.
PAYMENT OF WAGES ACT 1936