Group 3 Bonus Act Minimum Wages Act

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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Documents

Group 3 Bonus Act Minimum Wages Act