except Factory Any other establishment Public sector(Share capital held by Govt>40%) Note : For some establishment POBA will apply even if the number of employees are below 20 under two conditions, o Minimum of 10 employees o Notified in gazette. Once applies, applied forever.

All the employees Con 01: 30 days (or) more. Con 02: Salary less than (or) equal to 10,000. Note : Working days includes Casual leaves, sick leaves………….etc.

 Calculation of available surplus u/s 5. o Gross profit u/s 4 xxx o Less :Prior profits u/s6 xxx o Add :Tax savings(previous accounting year)* xxx Available surplus xxx Note : Subject to conditions of limits Allocable surplus Banking60% Other than banking 67%

 SET ON : Allocable surplus exceeds maximum bonus. Then the excess shall, subject to limit of 20% of salary will be carried forward for set on in next 4 accounting years.  SET OFF: Allocable surplus is nil or less than or equal to the minimum bonus. In this case the minimum or the deficiency is carried forward to next 4 accounting years. Note: The set on or the set off is adjusted in calculation of bonus payable.

o Calculation of bonus payable o Gross profit xxx o Less prior charges xxx o Add Tax savings xxx o Available surplus xxx o ALLOCABLE SURPLUS(60/ 67%) o Less set OFF xxx o Add set on xxx o BONUS PAYABLE xxx

 SALARY= BASIC SALARY+DA+FFA+RA+city.  The minimum for majors is RS 100.  The minimum for minors between 14 to 15 is RS 60.  The maximum bonus payable is RS 8400 (3500*20%*12months).  The minimum bonus payable is RS 1200 (100*12) (OR) for minors 720(60*12). Note: the bonus i.e minimum/maximum is calculated on RS3500 p.m (or) the salary less than RS3500 i.e salary of employee (or) RS 3500 which ever is lower

REASONS: Having regard to employers financial position and other relevant circumstances & It will not be in the public interest to pay the bonus Act. CONDITIONS: 1.Must given opportunity for being heard 2.can’t be given retrospectively 3.Through notification in the official gazette 4.It may be granted for the limited period 5.further,appropriate govt may impose certain conditions as it may think so.

OFFENCE PENALTY Contraventions of any provisions 6 months imprisonment and /or Rs 10,000 or both Default in complying with Act Note : If the offence is committed with the knowledge of director criminal liability is awardable on director and civil liability on company.

 Where a dispute regarding payment of bonus pending before any authority under section 22 with in 1 month on date on which the award or settlement comes into operation  In any other case  With in period of 8 months from closure of accounting year.  This period of 8 months may be extended up to a maximum of two years by appropriate government, on an application being made by the employer.  Collector - arrears of land revenue.  Inspector-Powers. Note : Interest of 9% is awarded to employee form the date it becomes due.

Calculated on number of units produced. It needs an agreement between employer and employee. Subjected to conditions imposed u/s31A. o An such agreement which results into the relinquishment of employees right to claim the minimum bonus is NULL & VOID. o If bonus payable under such agreement is in excess of 20% of the salary, such employees are not entitled to excess of 20%. Note: This section over rides entire Act.(units instead of profits).

 5 accounting years from starting of commercial productivity in which the employers earns profit.  From 8 th year the provisions of section 15 will apply.  Deemed profit: After employer made provisions for depreciation as per Income tax Act. Set off’s unabsorbed depreciation and unabsorbed losses.  Period of trail run is excluded. Note: The establishment is not deemed to be new one for changes in location, ownership, management.