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. Where an
employee has not worked for all the working days in an accounting year, the
minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if
such bonus is higher than 8.33 per cent of his salary or wage for the days he
has worked in that accounting year, shall be proportionately reduced.
Bonus
under the payment of bonus act cannot be claimed by workers as a matter of
right. The bonus formula under the act rest on calculation of the available
surplus and it envisages the following steps Computation of available surplus.
The available surplus in respect of any accounting year shall be the gross
profits for that year after deducting there from the sums referred to in
section 6 : Provided that the available surplus in respect of the accounting
year commencing on any day in the year 1968 and in respect of every subsequent
accounting year shall be the aggregate of:
1. (a) The gross profits for that accounting year after
deducting there from the sums referred to in section 6; and
2. (b) An amount equal to the difference between- (i)
The direct tax, calculated in accordance with the provisions of section 7, in
respect of an amount equal to the gross profits of the employer for the
immediately preceding accounting year; and (ii) The direct tax, calculated
in accordance with the provisions of section 7, in respect of an amount equal
to the gross profits of the employer for such preceding accounting year after
deducting there from the amount of bonus which the employer has paid or is
liable to pay to his employees in accordance with the provisions of this Act
for that year. Section 6: Sums deductible from gross profits. The following
sums shall be deducted from the gross profits as prior charges, namely:-
3. (a) any amount by way of depreciation admissible in
accordance with the provisions of sub-section (1) of section 32 of the
Income-tax Act, or in accordance with the provisions of the Agricultural
Income-tax Law, as the case may be: Provided that where an employer has been
paying bonus to his employees under a settlement or an award or agreement made
before the 29th May, 1965, and subsisting on that date after deducting from the
gross profits notional normal depreciation, then, the amount of depreciation to
be deducted under this clause shall, at the option of such employer (such
option to be exercised once and within one year from that date) continue to be
such notional normal depreciation;
4. (b) Any amount by way of [development rebate or
investment allowance or development allowance] which the employer is entitled
to deduct from his income under the Income-tax Act;
5. (c) Subject to the provisions of section 7, any direct tax
which the employer is liable to pay for the accounting year in respect of his
income, profits and gains during that year;
6. (d) Such further sums as are specified in respect of
the employer in the [Third Schedule]
