GDS தோழர்கள் 7000 போனஸ் சீலிங் பெற தகுதியானவர்களே.

GDS  தோழர்கள்  7000 போனஸ் சீலிங்  பெற தகுதியானவர்களே.

Press Information Bureau
Government of India
Ministry of Labour & Employment

24-September-2016 10:35 IST 

Understanding Minimum Wages and Bonus

*Bandaru Dattatreya

A minimum wage is the lowest remuneration that employers may legally pay to workers or it is the price floor below which workers may not sell their labour....................

The objective of the Payment of Bonus Act, 1965 is to provide for the payment of bonus to the persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matter connected therewith.

It applies to (i) Every Factory; and (ii) Every other establishment in which 20 or more persons are employed on any day during an accounting year subject to the exemptions under section 32. Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year. While the minimum bonus is 8.33% of the salary or wage earned by the employee during the accounting year, the maximum bonus is 20% of such salary or wage.

Two ceilings are available under the said Act generally known as eligibility limit and calculation ceiling respectively. Clause 13 of Section 2 of Payment of Bonus Act, 1965 defines an employee based on salary or wage per mensem. This is usually taken as the “eligibility limit” for computation of bonus. Similarly, Section 12 of the Payment of Bonus Act, 1965 provides for calculation of bonus of an employee based on salary or wage per mensem. This is known as “calculation ceiling”. 

The two ceilings are revised from time to time to keep pace with the price rise and increase in the salary structure. At present, the calculation ceiling has been enhanced to Rs.7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher and the eligibility limit has been enhanced to Rs.21,000/-.