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8/8/2019 Group 3 Bonus Act Minimum Wages Act
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Presented By
Aarti Srinivasan 001
Vibhu Dhamija 012
Namrata Mendon 035 Akshata Philhar 043
Balaji S R 046
Priyadarsh Sharma 051
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THE MINIMUM WAGES (CENTRAL)
RULES, 1948
An act to provide for fixingminimum rate of wages in
certain employments.
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Historical Backdropy The initiative by Shri K.G.R.Choudhary in 1920
y The International Labour Conference adopted in 1928
to wage fixing machinery in trades or parts of trades.yA Minimum Wages Bill was introduced in the Central
Legislative Assembly on 11.4.46
y It was passed in 1946 and came into force with effect
from 15.3.48.y The Committee on Fair Wage was set up in 1948
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Under the Act,y (a) Notify scheduled employment
y The appropriate Government fixes the minimum wage
in respect of only those scheduled employments wherethe number of employees is 1000 or more.
y (b) Fix/revise minimum wages
y Committee Method
y
Notification method
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NORMSy 3 consumption units for one earner.y Minimum food requirements of 2700 calories per
average Indian adult.y Clothing requirements of 72 yards per annum per
family.y Rent corresponding to the minimum area provided
for under Government'sy
Industrial Housing Scheme.y Fuel, lighting and other miscellaneous items of
expenditure to constitute 20% of the total MinimumWages.
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NORMSOther parameters
y Children education, medical requirement,minimum recreation includingfestivals/ceremonies and provision for old age,marriage etc. should further constitute 25% of
the total minimum wage.yOther local conditions
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Wage Policy National Wage Policy
Regional committees to reduce disparities in wages
National floor level minimum wage
Variable Dearness Allowance
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Types of Wages
yA minimum time rate
yA minimum piece rate
yA guaranteed time rate
yAn overtime rate
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Contd..
yWages in kind
y Payment of minimum rate of wages
y Fixing hours for normal working day etc.y Overtime
yWages of worker who works for less than normalworking day
yWages for two or more classes of work
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Othersy Maintenance of registers and records
y Inspectors
y Penalties for offences
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THE PAYMENT OF BONUS ACT, 1965
yAn Act to provide for the payment of Bonus to persons
employed in certain establishments
y It extends to the whole of India [Note: The words"except the State of Jammu and Kashmir" omitted by
Act 51 of 1970, Sec.2 and Schedule (w.e.f. 1stSeptember,1971).
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Applicability if the Act
y Every factory and
y Every establishment employing 20 or more persons
yAn establishment to which this Act applies shallcontinue to be governed by this Act notwithstandingthat the number of persons employed therein fallsbelow twenty.
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Eligibility Criteria
y Every employee is drawing a salary or wage upto 3500
per month
y Has worked for a minimum of 30 days in anaccounting year including seasonal workers.
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Bonus Calculationy Done on (Basic + DA). Not on HRA, LTA, PPF,
gratuity.
ySalary per month Bonus
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Minimum & Maximum Bonus
Minimum
y 8.33% of salary/wage or Rs. 100 whichever is highernot subject to allocable surplus.
Maximum
y 20% of salary/wage or 2 months salary/wagewhichever is lower.
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Time limit for payment of Bonusy Bonus must be paid within 8 months from the close of
the accounting year.
y Remedy provided under the act for recovering bonusdue but not paid.
y Employees can raise a dispute regarding bonus payableunder the act.
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Offences
If any person contravenes any provision of the act, hecan punished with
6 months of imprisonment,
or Rs. 1000 fine, or both.
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Exemptionsy Excluded categories employees of LIC, RBI, UTI,
Central and state government industrial
establishments etc.y Government is permitted to exempt any
establishments from the provisions of the act.
yAn establishment will not be deemed to be newly
set up by reason of change in its name, location ormanagement.
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Bonus linked with production or
productivityNotwithstanding anything contained in this Act, -
(i) Where an agreement or a settlement has been
entered into by the employees with their employerbefore the commencement of the Payment of Bonus(Amendment) Act, 1976 (23 of 1976), or
(ii) Where the employees enter into any agreement with
their employer after such commencement.
With subject to the minimum and maximum bonusrules.
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Disqualification for BonusNotwithstanding anything contained in this Act, anemployee shall be disqualified from receiving bonus
under this Act, if he is dismissed from service for-y (a) Fraud; or
y (b) Riotous or violent behaviour while on the premisesof the establishment; or
y (c) Theft, misappropriation or sabotage of anyproperty of the establishment.
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