Dear Mr.Venky
The applicability of the Paymen 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 Tamilnadu. The software/IT companies are covered by the provisions of the Tamilnadu Shops and Establishments Act. They are considered to be "establishments" as defined under the Tamilnadu 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. May be that the employees are higher than the upper limit fixed by the Act. In such a case those employees are not covered by the provisions of the Act. But the Act is applicable to the establishment. Therefore if any one comes within the salary limit then the Company is bound to pay them bonus as provided for by the Act.
From India, Madras
169The applicability of the Paymen 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 Tamilnadu. The software/IT companies are covered by the provisions of the Tamilnadu Shops and Establishments Act. They are considered to be "establishments" as defined under the Tamilnadu 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. May be that the employees are higher than the upper limit fixed by the Act. In such a case those employees are not covered by the provisions of the Act. But the Act is applicable to the establishment. Therefore if any one comes within the salary limit then the Company is bound to pay them bonus as provided for by the Act.
From India, Madras
Dear Mr.K.C.Seshadri
The Payment of Bonus Act is applicable to hospitals whether they are run by charitable organisations or by individuals or corporates provided they had employed atleast twenty or more persons during the accounting year.
With regards
From India, Madras
The Payment of Bonus Act is applicable to hospitals whether they are run by charitable organisations or by individuals or corporates provided they had employed atleast twenty or more persons during the accounting year.
With regards
From India, Madras
is there any notification or statutory norms from Govt that For getting Bonus Salary should be below Rs. 21000/ month, if there is please send me the Govt notification for statutory norms or compliance . for fulfilling the actual requirement of actual Bonus eligibility Act Latest notification / circular please send it is urgently required for me.
Thanks
S.K.Pathak
From India, Jamshedpur
Thanks
S.K.Pathak
From India, Jamshedpur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Payment-of-Bonu s-Act-2007-Noti fication.pdf