Session with Staffs

06 Nov 2017
 Agenda
All payments through bank account.
OT
Rate: as per Minimum wages applicable w.e.f 1st
Oct 2017.
OT & expenses to be restricted and controlled.
Bonus as per Act.
explanation ahead.
 Bonus How and When?
1917 Concept of paying as reward for good work or share
of profit from the unit where employee is working.
In India it originated during World War I - 28 Jul 1914 11 Nov
1918.
Certain textile mills granted war bonus in 1917.
1950 Formula to calculate bonus evolved by Full bench of
Labour Appellate.
1965 extended to whole of India to factories employing
10 or more and profit making establishment employing 20
or more.
2014 2015 - 2016 Amendments in Act retrospectively
w.e.f, 1st April 2014.
 Eligibility:
Every employee drawing basic wages upto Rs. 21000/-.
Must have worked for minimum 30 days during accounting
year / financial year April to March (Bonus Act Section-
08).
Disqualification of Payment of Bonus to employee: if
dismissed from service for fraud, Riotous or Violent
Behaviour, or Theft, Misappropriation of Sabotage
Bonus is paid out of the surplus of profit, so organization
not having profit and in loss are not bound to pay the
bonus to employees who have not completed minimum 5
years after 1st accounting year of organization or technically
6 years in total).
 Payment Rate & Calculation:
Minimum 8.33% & Maximum upto 20% of Rs. 7000/- (or
minimum wages, whichever is higher) (on completion of 5 years
after 1st Accounting year even if there is no profit) (sec-10).
For Calculation purpose higher of either . Rs. 7000/- or actual
minimum wage will be taken even if an employee is drawing
7000/- per month.
Time limit to pay Bonus: within 8 months from the close of
accounting year. Mostly before Diwali (Sec 19)
Bonus of each Accounting year is paid within 8 months of beginning of
next accounting year.
And so Bonus calculated of each Month from - April, May, June, July,
Aug, Sept, Oct, Nov, Dec, Jan, Feb, March is paid during Diwali which is
mostly in 7 to 8th month of the next Financial year.
THANK YOU
 http://relyonsoft.com/blogs/bonus-act-
amendment-ceiling-to-be-raised-to-rs-21000/