Dear All,
As per the "BONUS ACT" total number of employees are required TWENTY or more then this, on any day during an accounting year.
My query is twenty employees means, who are getting Salary/Wages less than the wages/salary limit ?? or this is the total strength of the working employees.
Please help me.
Regards,
Jagdish Pathak
.
From India, Gurgaon
49As per the "BONUS ACT" total number of employees are required TWENTY or more then this, on any day during an accounting year.
My query is twenty employees means, who are getting Salary/Wages less than the wages/salary limit ?? or this is the total strength of the working employees.
Please help me.
Regards,
Jagdish Pathak
.
From India, Gurgaon
Thanks Hronly,
My query has not solved yet.
as per the attached sheet it says "The law is applicable to factories and other establishments employing 20 or more persons."
but it is not cleared that 20 employees means .....who are getting Salary/Wages less than the wages/salary limit ?? or this is the total strength of the working employees.
Thanks,
Jagdish Pathak
From India, Gurgaon
My query has not solved yet.
as per the attached sheet it says "The law is applicable to factories and other establishments employing 20 or more persons."
but it is not cleared that 20 employees means .....who are getting Salary/Wages less than the wages/salary limit ?? or this is the total strength of the working employees.
Thanks,
Jagdish Pathak
From India, Gurgaon
Thanks Kundan for your kind support.
Actually in my organisation total number of strength is more than 5000 and some of them are getting salary below Rs. 10,000/= so I was little confused whether 20 employee means total strength OR those getting salary below 10,000/=
Thanks.
Jagdish Pathak
From India, Gurgaon
Actually in my organisation total number of strength is more than 5000 and some of them are getting salary below Rs. 10,000/= so I was little confused whether 20 employee means total strength OR those getting salary below 10,000/=
Thanks.
Jagdish Pathak
From India, Gurgaon
Hi to all
The payment of Bonus Act 1965 speaks:
1. The act is applicable to all Industries / establishments employing 20 workmen or more. (Sec - 1 of the Act)
2. Even if at any point of time the total figure i.e. 20 workmen (employed) fall below to 20 Nos. in the establishment after introduction/ covering of Bonus payments, the employer shall have to continue hold no right to stop payment of bonus to its employees even the employed are less than 20 Nos. (Sec - 1(5) of the Act)
3. The minimum period for eligibility of bonus to any employee, is who had worked for minimum 30 days in a calender year.
4. The minimum bonus at per the said Act is 8.33% of annual Basic + DA and not on any allowances. The maximum limit payable as per the said act is 20% on Basic + DA and not on any other allowances, ( i.e. HRA, Conveyance, OT, gratuity etc). The minimum bonus payable is Rs.100.00 or 8.33% of Basic + DA which ever is more. The sealing limit of salary (Basic + DA ) on which bonus is payable is Rs.3500.00. (Sec 21 (Salaries)
(Sec - 10 Mimi mum Bonus) ( Sec - 11 Maximum bonus)
5. The employee who is drawing a salary up to Rs.10,000.00 per month and who worked for a period of 30 days in a calendar year is entitled to bonus.
6. The Bonus to be paid with in 8 months from the financial year accounts closing. (Sec - 19 for time limit for payment of bonus)
7. The newly set up industries / establishments are exempted from payment of bonus for a period of 5 years from the date of commencement of the unit.
8. A running unit when closed down and is sold to a new employer / industrialist and the name is changed, even than if the closed unit had completed the tenure of 5 years, the new employer had to make payment of bonus to its employees, they can not take the exemption of 5 years with a ply that it is a new management and a new unit.
9. Maintenance of Register, records to me maintained as per Sec - 26 of the Act, in prescribed form.
Mohan Rao
Manager HR
From India, Visakhapatnam
The payment of Bonus Act 1965 speaks:
1. The act is applicable to all Industries / establishments employing 20 workmen or more. (Sec - 1 of the Act)
2. Even if at any point of time the total figure i.e. 20 workmen (employed) fall below to 20 Nos. in the establishment after introduction/ covering of Bonus payments, the employer shall have to continue hold no right to stop payment of bonus to its employees even the employed are less than 20 Nos. (Sec - 1(5) of the Act)
3. The minimum period for eligibility of bonus to any employee, is who had worked for minimum 30 days in a calender year.
4. The minimum bonus at per the said Act is 8.33% of annual Basic + DA and not on any allowances. The maximum limit payable as per the said act is 20% on Basic + DA and not on any other allowances, ( i.e. HRA, Conveyance, OT, gratuity etc). The minimum bonus payable is Rs.100.00 or 8.33% of Basic + DA which ever is more. The sealing limit of salary (Basic + DA ) on which bonus is payable is Rs.3500.00. (Sec 21 (Salaries)
(Sec - 10 Mimi mum Bonus) ( Sec - 11 Maximum bonus)
5. The employee who is drawing a salary up to Rs.10,000.00 per month and who worked for a period of 30 days in a calendar year is entitled to bonus.
6. The Bonus to be paid with in 8 months from the financial year accounts closing. (Sec - 19 for time limit for payment of bonus)
7. The newly set up industries / establishments are exempted from payment of bonus for a period of 5 years from the date of commencement of the unit.
8. A running unit when closed down and is sold to a new employer / industrialist and the name is changed, even than if the closed unit had completed the tenure of 5 years, the new employer had to make payment of bonus to its employees, they can not take the exemption of 5 years with a ply that it is a new management and a new unit.
9. Maintenance of Register, records to me maintained as per Sec - 26 of the Act, in prescribed form.
Mohan Rao
Manager HR
From India, Visakhapatnam
Dear Friend
Your query is surprising; when you already employ 5000 employees.
You must not have recruited all of them in a day, or week or month or a year !!
What was the practice in earlier years ??
Haven't you ever given bonus to any employee in the past ???
Then why this basic query now???
Do you want to deny bonus to your employees on some pretext ??
When the Act says 20 and is silent about the classification of the 20 employees; why are you raising a new issue on the category or salary of employees ??
Twenty means 20.
End of any argument.
From India, Delhi
Your query is surprising; when you already employ 5000 employees.
You must not have recruited all of them in a day, or week or month or a year !!
What was the practice in earlier years ??
Haven't you ever given bonus to any employee in the past ???
Then why this basic query now???
Do you want to deny bonus to your employees on some pretext ??
When the Act says 20 and is silent about the classification of the 20 employees; why are you raising a new issue on the category or salary of employees ??
Twenty means 20.
End of any argument.
From India, Delhi
Dear Jag,
for making coverage of Bonus act, 20 persons means the employee defined in the bonus act in sec.2(13) of the bonus act.
This section says that " employee means any person (other than an apprentice) employed on a salary or wage not exceeding ten thousand per mensum in any industry to do any skilled or unskilled ,manual, supervisory, managerial, administrative,technical or clerical work for hire or reward, whether the terms of employment be express or implied.
Hence it makes you clear that 20 denotes the persons who are all within the salary of bonus ceiling amount of Rs.10000/- per month.
Hope you are clear now.
regards
ganesan
From India, Madras
for making coverage of Bonus act, 20 persons means the employee defined in the bonus act in sec.2(13) of the bonus act.
This section says that " employee means any person (other than an apprentice) employed on a salary or wage not exceeding ten thousand per mensum in any industry to do any skilled or unskilled ,manual, supervisory, managerial, administrative,technical or clerical work for hire or reward, whether the terms of employment be express or implied.
Hence it makes you clear that 20 denotes the persons who are all within the salary of bonus ceiling amount of Rs.10000/- per month.
Hope you are clear now.
regards
ganesan
From India, Madras
Dear Jagdish, This term is applicable only to those organization who are having total strength of 20 or more employees Regards, Prajakta Sanas:idea::)
From India, Mumbai
From India, Mumbai
Dear Shri Pathak,
The bonus Act is applicable to establishments employing twenty or
more employees.For the purpose of applicability only those persons
who are employees within the meening of the Act are to be counted.
Thus if the number of persons drawing wages more than Rs.3500/-,
exceeds twenty,then alone the Act is applicable.
Regards
From India, Pune
The bonus Act is applicable to establishments employing twenty or
more employees.For the purpose of applicability only those persons
who are employees within the meening of the Act are to be counted.
Thus if the number of persons drawing wages more than Rs.3500/-,
exceeds twenty,then alone the Act is applicable.
Regards
From India, Pune
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