Dear Mr. Venky,
The applicability of the Payment of Bonus Act to software/IT companies has to be determined based on the provisions of section 1(3)(a) and 1(3)(b) of the Payment of Bonus Act. According to section 1(3)(b), the Payment of Bonus Act is applicable to an establishment in which twenty or more persons are employed on any day during an accounting year.
You appear to be based in Chennai. Therefore, I am answering your post with reference to the provisions applicable to software/IT companies in Tamil Nadu. The software/IT companies are covered by the provisions of the Tamil Nadu Shops and Establishments Act. They are considered to be "establishments" as defined under the Tamil Nadu Shops and Establishments Act. Therefore, according to section 1(3)(b) of the Payment of Bonus Act, if the software/IT companies employ twenty or more persons in an accounting year, then the Payment of Bonus Act is applicable to them.
It may be that the number of employees is higher than the upper limit fixed by the Act. In such a case, those employees are not covered by the provisions of the Act. However, the Act is applicable to the establishment. Therefore, if anyone falls within the salary limit, then the company is bound to pay them a bonus as provided for by the Act.
From India, Madras
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181The applicability of the Payment of Bonus Act to software/IT companies has to be determined based on the provisions of section 1(3)(a) and 1(3)(b) of the Payment of Bonus Act. According to section 1(3)(b), the Payment of Bonus Act is applicable to an establishment in which twenty or more persons are employed on any day during an accounting year.
You appear to be based in Chennai. Therefore, I am answering your post with reference to the provisions applicable to software/IT companies in Tamil Nadu. The software/IT companies are covered by the provisions of the Tamil Nadu Shops and Establishments Act. They are considered to be "establishments" as defined under the Tamil Nadu Shops and Establishments Act. Therefore, according to section 1(3)(b) of the Payment of Bonus Act, if the software/IT companies employ twenty or more persons in an accounting year, then the Payment of Bonus Act is applicable to them.
It may be that the number of employees is higher than the upper limit fixed by the Act. In such a case, those employees are not covered by the provisions of the Act. However, the Act is applicable to the establishment. Therefore, if anyone falls within the salary limit, then the company is bound to pay them a bonus as provided for by the Act.
From India, Madras
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Dear Mr. K.C. Seshadri,
The Payment of Bonus Act is applicable to hospitals, whether they are run by charitable organizations, individuals, or corporates, provided they have employed at least twenty or more persons during the accounting year.
With regards,
From India, Madras
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The Payment of Bonus Act is applicable to hospitals, whether they are run by charitable organizations, individuals, or corporates, provided they have employed at least twenty or more persons during the accounting year.
With regards,
From India, Madras
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Is there any notification or statutory norms from the government that for getting bonus salary, the salary should be below Rs. 21,000 per month? If there is, please send me the government notification for statutory norms or compliance. For fulfilling the actual requirement of bonus eligibility act, the latest notification/circular is urgently required. Please send it to me.
Thanks,
S.K. Pathak
From India, Jamshedpur
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Thanks,
S.K. Pathak
From India, Jamshedpur
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