Dear sir,
Now the bonus amendment stipulates a minimum of 7000/- and a maximum of 21000/-. However, one employee is receiving a salary of 6000/-, which is below the minimum wage, but the bonus minimum is set at 7000/-. What should be done for an employee receiving a salary of 6000/- in this scenario?
Thank you.
From India, Pune
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5Now the bonus amendment stipulates a minimum of 7000/- and a maximum of 21000/-. However, one employee is receiving a salary of 6000/-, which is below the minimum wage, but the bonus minimum is set at 7000/-. What should be done for an employee receiving a salary of 6000/- in this scenario?
Thank you.
From India, Pune
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Dear Jagan,
You could have referred to the number of threads already answered categorically for this question. As per the latest amendment to the Payment of Bonus Act, 1965, the minimum bonus under the Act shall be Rs. 7,000/= or the minimum wages WHICHEVER IS HIGHER only. So, you have to pay the minimum bonus of Rs. 7,000/= to the employees whose minimum wages are less than the said amount.
From India, Salem
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You could have referred to the number of threads already answered categorically for this question. As per the latest amendment to the Payment of Bonus Act, 1965, the minimum bonus under the Act shall be Rs. 7,000/= or the minimum wages WHICHEVER IS HIGHER only. So, you have to pay the minimum bonus of Rs. 7,000/= to the employees whose minimum wages are less than the said amount.
From India, Salem
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Dear Jagan Appreciating reply from Mt. Umakanthan, I would like to check , are you paying the employee less the the minimum wages? Shailesh Parikh 99 98 97 10 65 Vadodara
From India, Mumbai
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From India, Mumbai
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In the light of the valid query raised by our learned member Shailesh, I would like to elaborate on my earlier reply.
Minimum wages here refer to the minimum wages fixed by the appropriate government for employment under the Minimum Wages Act, 1948, and not the wages, if any, actually paid less than it. In such a situation of a lesser rate of payment of wages contrary to section 12 of the MW Act, the employer has to check whether the monthly minimum rate of wages is equal to the notional rate of Rs. 7000/= per month or more, and if more, the bonus shall be computed on the basis of the higher minimum wages only.
From India, Salem
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Minimum wages here refer to the minimum wages fixed by the appropriate government for employment under the Minimum Wages Act, 1948, and not the wages, if any, actually paid less than it. In such a situation of a lesser rate of payment of wages contrary to section 12 of the MW Act, the employer has to check whether the monthly minimum rate of wages is equal to the notional rate of Rs. 7000/= per month or more, and if more, the bonus shall be computed on the basis of the higher minimum wages only.
From India, Salem
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Umakantan sir has given the valid answer to the post.Minimumwages or the 7000/ which ever is higher to be paid as bonus.
From India, Vadodara
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From India, Vadodara
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The term "minimum wage" appears only in Section 12 of the Payment of Bonus Act, 1965. This section pertains to the calculation of the minimum and maximum bonuses for employees earning wages above Rs. 7000 per month. Therefore, the computation of bonuses concerning minimum wages applies solely to employees with wages exceeding Rs. 7000 per month.
In my view, the bonuses for employees earning Rs. 6000 per month (less than Rs. 7000) should be calculated based on Rs. 6000 only. The language used in Section 12 supports this interpretation.
From India, Thiruvananthapuram
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In my view, the bonuses for employees earning Rs. 6000 per month (less than Rs. 7000) should be calculated based on Rs. 6000 only. The language used in Section 12 supports this interpretation.
From India, Thiruvananthapuram
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