Payment of Minimum and Maximum Bonus - Payment of Bonus Act(1965), Industrial Laws | Industrial Laws - B Com PDF Download

Section 10 : Payment of minimum bonus

Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of theaccounting year commencing on any day in the year1979 and in respect of every subsequent accounting year, aminimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year orone hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accountingyear:Provided that where an employee has not completed fifteen years of age at the beginning of the accountingyear, the provisions of this section shall have effecting relation to such employee as if for the words “onehundred rupees”, the words “sixty rupees” were substituted.

Section 11 : Payment of maximum bonus.

(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount ofminimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, bebound to pay to every employee in respect of that accounting; year bonus which shall be an amount in proportion to thesalary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of suchsalary or wage.

(2) In computing the allocable surplus under this section, the amount set on or the amount set off under theprovisions of section 15 shall be taken into account in accordance with the provisions of that section.

Section 12 : Calculation of bonus with respect to certain employees.

Where the salary or wage of an employee exceeds [two thousand and five hundred rupees] per month, the bonuspayable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary orwage were [two thousand and five hundred rupees] per month.
 

Section13 : Proportionate reduction in bonus in certain cases.

Where an employee has not worked for all the working days in an accounting year, the minimum bonus of onehundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 8.33 per cent, of his salary or wagefor the days he has worked in that accounting year, shall be proportionately reduced.

Section 14 : Computation of number of working days.

For the purposes of section 13, an employee shall be deemed to have worked in an establishment in any accounting yearalso on the days on which—
(a) he has been laid off under an agreement or as permitted by standing orders under the Industrial Employment (StandingOrders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicableto the establishment;
(b) he has been on leave with salary or wage;
(c) he has been absent due to temporary disablement caused by accident arising out of and in the course ofhis employment; and
(d) the employee has been on maternity leave with salary or wage, during the accounting year.