1. Bonus Act, 1965
• Applicability
(a) Every factory (as def. in Factories Act), & (b) Every
other establishment in which 20 or more persons (less
than 20 but 10 or more if appropriate Govt. notifies) are
employed on any day subject to certain exemptions.
ii) Employees' drawing remuneration of Rs. 3,500/- or
more and those who have worked for less than 30 days
are not eligible to receive bonus under the Act.
iii) Bonus to be paid within eight months from the
expiry of the accounting year.
2. Eligibility
• i) Every person (other than an apprentice)
drawing salary up to RS 3,500 per month.
Ii) Every person drawing salary between RS
2,501/- and RS 3,500/- per month. The bonus
payable to him is to be calculated as if his salary
were RS 2,500/- p.m. – salary means basic pay +
DA only
3. Benefits
i) Subject to other provisions :— Minimum bonus
shall be 8.33% of salary/wages earned or RS 100
whichever is higher.
Ii) If allocable surplus exceeds the amount of
minimum bonus, then bonus shall be payable at
higher rate subject to a maximum 20% of
salary/wages.
Iii) Computation of bonus is to be worked out as
per Schedule I to IV of the Act.
4. Payment of Wages Act, 1936
• Objectives
To ensure regular and prompt payment of wages
and to prevent the exploitation of a wage earner
by prohibiting arbitrary fines and deductions
from his wages.
5. Scope and coverage
- Application for payment of wages to persons
employed in any factory.
- Not applicable to wages which average Rs 1600/- per
month or more.
- Wages include all remuneration, bonus, or sums
payable for termination of service, but do not include
house rent reimbursement, light vehicle charges,
medical expenses, TA, etc.
6. Minimum wages Act, 1948
• A tripartite Committee Viz.,"The Committee on Fair Wage" was
set up in 1948 to provide guidelines for wage structures in the
country. The report of this Committee was a major landmark in
the history of formulation of wage policy in India. Its
recommendations set out the key concepts of the `living wage',
"minimum wages" and "fair wage" besides setting out guidelines
for wage fixation.
• Article 39|- The State shall, in particular, direct its policy towards
securing (a) that the citizen, men and women equally shall have
the right to an adequate livelihood and (b) that there is equal pay
for equal work for both men and women.
7. • Article 43 |- The State shall endeavor, by suitable
legislation or economic organization or in any
other way, to give all workers, agricultural,
industrial or otherwise, work, a living wage,
conditions of work ensuring a decent standard of
life and full enjoyment of leisure, and social and
cultural opportunities.