Presentation

on
Payment of Wages Act 1936
&
Payment of Bonus Act 1965
By:P.K.Singh, PGEXP/026/2012

Penalty fora.Unauthorized deductions &

b.Delayed payment of wages

MINIMUM RS. 1500/MAXIMUM RS.7500/ Under sec.20(1) of PWA 1936.

Can the industrial adjudicators pass an

award revising the wages downwards,
i.e. to the prejudice to the workmen?
Depends.
1. Adjudicators can- When there is an
error of facts in the wage revision.
2. Otherwise- Binding.

Available Surplus
Sec(5)& Sec(6).
Available Surplus = Gross Profit (Sl.
No. 1 to 4)
1. Depreciation
2. Development allowance
3. Direct taxes payable for the
accounting year(sum specified in
Third Schedule)
4. Direct taxes in respect of gross
profit for the immediately preceding

Allocable Surplus
Sec(4).
Allocable Surplus = 60% of Available Surplus
OR
67% (other than banking).
-Make adjustment for SET ON & SET OFF:
For calculating the amount of bonus in
respect of an accounting year, allocable
surplus is computed after considering the
amount of SET ON & SET OFF from previous
years as illustrated in Fourth Schedule.

How does the formula of set on &

set off of Allocable surplus operate
in determining the quantum of
bonus payable in a given
accounting year?
Refer the Fourth Schedule of PBA 1965
under Sec. 15 & Sec.16 of the Act.

Minimum qualifying period of

service for claim of Bonus in an
accounting year

Should have worked in the

establishment for not less than 30
working days in that year (Sec.8 of
PBA 1965)

Disqualification for Bonus

If an employee is dismissed from
service for:
a. Fraud, or
b. Riotous or violent behavior while
on the premises of the
establishment, or
c. Theft, misappropriation or
sabotage of any property of the
establishment.
(Refer Sec.9 of PBA 1965)