any doc citing basic salary for calculating bonus
Ankush Mehta
(Querist) 28 February 2008
This query is : Resolved
My friend is having a problem in getting his bonus because his company is making an excuse that the act refers to gross salary(and his is greater than 10000) while i have seen companies handing out bonus on basic salary.
Is there any govt. document my friend can show to his company to show that the act refers to basic salary.What can he do? please guide
manmeet singh arora
(Expert) 04 March 2008
DEAR SIR,
1.THE PAYMENT OF BONUS ACT APPLIES TO EVERY FACTORY AND EVERY OTHER ESTABLISHMENT IN WHICH 20 OR MORE PERSONS ARE EMPLOYED ON ANY DAY DURING ACCOUNTING YEAR.
2.THE AMENDING ACT OF 1976 EMPOWERS THE APPROPRIATE GOVERMENT TO APPLY THE ACT TO ANY ESTABLISHMENT OR CLASS OF ESTABLISHMENT INCLUDIND A FACTORY WITHIN A MEANING OF SECTION 2(M)(II) OF THE FACTORIES ACT,1948
3.ONCE THE BONUS ACT BECOMES APPLICABLE TO THE ESTABLISHMENT WHICH INCLUDES THE SHOP, IT WILL CONTINUE TO APPLY IRRESPECTIVE OF THE FACT THAT THE NUMBER OF EMPLOYEES WORKING THEREIN FALLS 20 OR NUMBER SPECIFIED IN NOTIFICATION.
4.EVERY EMPLOYEE DRAWING WAGES UPTO RS 3500 PER MONTH SHALL BE ENTITLED TO BE PAID BY EMPLOYER IN AN ACCOUNTING YEAR,BONUS IN ACCORDANCE WITH THE PROVISIONS OF THIS ACT, PROVIDED HE HAS WORKED IN AN ESTABLISHMENT FOR NOT LESS THAN 30 DAYS IN THAT YEAR.
5. AS HIS SALARY IS MORE THAN RS 10,000 HE IS ENTITLED TO BOUS ON HIS BASIC PAY OF THE ABOVE ACT.
Hiralal Das
(Expert) 07 April 2009
Thanks all of you the ld. members and the author.
I think your valuable opinions will assist everybody to solve their problem/matter in question properly.
