The Labour Code

PART - II

• Mode and Time Limit for Payment of Wages

• Deduction from Wages
• Payment of Bonus
• Illustrations and Comparison of Code and Act
Mode and Time Limit for the Payment of
Wages
Deduction from Wages
 Any payment made by EMPLOYEE TO EMPLOYER (OR HIS AGENT)
Deduction
ANY LOSS OF WAGE , FOR A GOOD CAUSE / SUFFICIENT CAUSE
RESULTING FROM

i) Withholding / stoppage of an increment or promotion

ii) Reduction to a lower post / time scale
iii) Suspension (if provision is made by the employer - which satisfies
the requirements of the notification issued by the app. govt)

Deduction

Absence of Other Co-operative Fees / Contribution to

Fines House Advances Loans Income tax membership of
duty Damage or Amenities society PM relief fund
trade union on
loss of accommoda Payment of written
tion advances from authorization
goods social security
from employee
fund

Railway Recovery of loss by railway admin for counterfeit currency upon acceptance
admin
For the failure of the employee to invoice, bill, collect or account appropriate charges

Granting incorrect refunds due to employee neglect or default

Fines
Deduction from Absence of Duty
 PAYMENT OF BONUS
An annual minimum bonus has to be paid to every employee who has worked for
atleast 30 days in an accounting year at the rate of 8 and 1/3rd % of wages earned by
the employee OR Rs. 100/- (whichever is higher), whether or not the employer has
any surplus during the previous AY
Definitions
Set On
 Allocable surplus > maximum bonus payable (20%) then…
 Excess (max 20%) carried forward to succeeding AY

 No Available surplus / allocable surplus

 No sufficient amount to be carried forward to succeeding AY then…. Minimum amount carried forward to succeeding AY