The Payment Of Bonus Act
Can any one answer these questions?
1. Are there any rules are there under the POB act for Karnataka or central rules be applicable to all States and UTs
2. If it is collected on gross then OT, attendance allowance and all allowances will be included
3. If yes then what if any month's salary exceeds to 21k and in that financial year the salary will decrease
4. form D has to submit to the inspector before the 30th of December am i right
4. Form A, B, C, has to be maintained in the organization am I right...?
5. Could you please tell me about form C.
From India, Chennai
Can any one answer these questions?
1. Are there any rules are there under the POB act for Karnataka or central rules be applicable to all States and UTs
2. If it is collected on gross then OT, attendance allowance and all allowances will be included
3. If yes then what if any month's salary exceeds to 21k and in that financial year the salary will decrease
4. form D has to submit to the inspector before the 30th of December am i right
4. Form A, B, C, has to be maintained in the organization am I right...?
5. Could you please tell me about form C.
From India, Chennai
Payment of Bonus Act is a Central Act and as such it extends to the whole of India and applies to all factories without reference to the number of employees employed and to other establishments in which twenty or more employee are employed.
Bonus is paid to employees whose bonus qualifying wages does not exceed Rs 21000 per month. If an employee's salary exceeds Rs 21000 in the middle of a year, then his bonus should be calculated for the period during which his salary was less than Rs 21000 only. Though Rs 21000 is the cut off limit for entitlement, the bonus is calculated on a salary of Rs 7000 or the statutory minimum wages notified by the government. Therefore, even if the salary is Rs 21000, the calculation will be on the presumption that the wages is Rs 7000. If the establishment is included in the scheduled employment for which minimum wages has been fixed by the government, then that minimum wages should be the base for calculating the minimum wages.
The bonus qualifying salary normally includes Basic salary and Dearness allowance only. If you have a consolidated pay, the whole amount will qualify for bonus. Overtime allowance paid will never form part of wages for bonus calculation.
For A, B and C are various forms in which the profits, available surplus and allocable surplus are shown. These have no practical use because the rate of bonus is always decided by the management and if there is Union, in consultation witht he Union. In such negotiation, these forms will not come in the picture because the Union will not accept it in practice!
Form D is to be sent to the Labour department for information.
From India, Kannur
4246Bonus is paid to employees whose bonus qualifying wages does not exceed Rs 21000 per month. If an employee's salary exceeds Rs 21000 in the middle of a year, then his bonus should be calculated for the period during which his salary was less than Rs 21000 only. Though Rs 21000 is the cut off limit for entitlement, the bonus is calculated on a salary of Rs 7000 or the statutory minimum wages notified by the government. Therefore, even if the salary is Rs 21000, the calculation will be on the presumption that the wages is Rs 7000. If the establishment is included in the scheduled employment for which minimum wages has been fixed by the government, then that minimum wages should be the base for calculating the minimum wages.
The bonus qualifying salary normally includes Basic salary and Dearness allowance only. If you have a consolidated pay, the whole amount will qualify for bonus. Overtime allowance paid will never form part of wages for bonus calculation.
For A, B and C are various forms in which the profits, available surplus and allocable surplus are shown. These have no practical use because the rate of bonus is always decided by the management and if there is Union, in consultation witht he Union. In such negotiation, these forms will not come in the picture because the Union will not accept it in practice!
Form D is to be sent to the Labour department for information.
From India, Kannur
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THE PAYMENT OF BONUS ACT.doc