Page 239 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes (i) any other allowance
(ii) the value of any house accommodation or of supply of light, water, medical attendance or
other amenity or of any service or of any concessional supply of food grains or other articles;

(iii) any travelling concession;
(iv) any bonus (including incentive, production and attendance bonus);
(v) any contribution paid or payable by the employer to any pension fund or provident fund;
(vi) any retrenchment compensation or any gratuity or other retirement benefit;

(vii) any commission payable to the employee.

!
Caution Free food allowance or free food by his employer, such food allowance or the
value of such food in lieu of salary is deemed to form part of the salary or wages of such
employee.

Did u know? Payment of Minimum Bonus: 8.33% of the salary or 100 (on completion of 5
years after 1st Accounting year even if there is no profit).

12.3.2 Disqualification of Bonus

Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving
bonus under this Act, if he 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.

Notes Payment of Bonus Act not to apply to certain classes of employees [Section 32]:
1. Life Insurance Corporation
2. The Indian Red Cross Society or any other institution of a like nature,
3. Universities and other educational institutions
4. Institutions (including hospitals, chambers of commerce and society welfare
institutions) established not for purposes of profit,
5. Employees employed through contractors on building operations,
6. Employees employed by the Reserve Bank of India,
7. The Industrial Finance Corporation of India,
8. Financial Corporations,

9. The National Bank for Agriculture and Rural Development,
10. The Unit Trust of India,
11. The Industrial Development Bank of India

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