Applicability of the Act:
The Act applies to every Factory.
The Act applies to every establishment in which 20 or more persons are employed on any day of the AY
Employee:
‘Employee’ means any person (other than an apprentice), employed on a salary or wage not exceeding Rs.10,000 per month, in any industry, to do any skilled or unskilled work.
Salary or Wage:
Salary shall mean the remuneration and will include Dearness allowance, Food allowance given in lieu of salary.
What does not include salary: Other Allowances, Commission, Bonus, Travelling Concession,Overtime remuneration or any other addition, what so ever.
Eligibility for bonus:
In case of normal establishments and also seasonal establishments: If the employee has worked for at least 30 working days in an Accounting Year.
Disqualification for Bonus [Sec.9]: An employee shall be disqualified from bonus, if employee has been dismissed from the service for Fraud, Riotous behaviour, theft or misappropriation.
Minimum Bonus:
If employee is aged greater than or equal to 15: Higher of, 8.33% 0f Salary or Rs.100
If employee is aged less than 15: Higher of, 8.33% 0f Salary or Rs.60
Time limit for payment of bonus:
Bonus shall be paid within 8 months from the end of AY
Maximum Bonus:
If in an AY, allocable surplus exceeds the amount of minimum bonus, the employer shallpay to every employee, in lieu of minimum bonus, such amount not exceeding 20% ofsuch salary or wage.
If in an AY, allocable surplus is less than the minimum bonus, then such deficiencyshall be carried forward to 4 succeeding years.
Such amounts carried forward to next year will be adjusted to allocable surplus ofrespective year.
Non-Applicability of the Act [Sec 32]:
-Employees employed by LIC and General Insurance companies.
-Seamen
-Employees registered under any scheme made under the Dock Workers Act, 1948
-Employees employed by Non-profit organizations.
-Employees employed by SFC, NABARD, IDBI, UTI
-Employees employed by Inland Water Transport Establishments operating onroutes passing through any other country.
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