THE FOURTH SCHEDULE
(See section 15 and 16)
In the Schedule, the total amount of bonus equal to 8.33 per cent of the annual salary or wage payable to all the employees is assumed to be Rs. 1,04,167. Accordingly, the maximum bonus to which all the employees are entitled to the paid (twenty per cent of the annual salary or wage of all the employees) would be Rs. 2,50,000.
|Year||Amount equal to sixty per cent.
or sixty seven per cent, as the case may be,
oravailable surplus allocable as bonus
|Amount payable as bonus||Set on or set off of the year carried forward||Total set on or set off
|Rs.||Rs.||Rs.||Rs. of (year)|
|2.||6,35,000||2,50,000*||Set on 2,50,000*||Set on
(inclusive of 30,000 from year-2)
|Nil||Set on (2)
|4.||3,75,000||2,50,000*||Set on 1,25,000*||Set on
(inclusive of 1,10,000 from year-2)
|Nil||Set on (2)
|6.||3,10,000||2,50,000*||Set on 60,000||Set on Nil+ (2) 1,25,000 (4)
(inclusive of 1,25,000 from year-4 and
25,000 from year-6)
|Nil||Set on 35,000
|8.||Nil (due to loss)||1,04,167**
(inclusive of 35,000
from year -6)
|Set off 69,167||Set off
|9.||10,000||1,04,167**||Set off 94,167||Set off 69,167 (8)
(after setting of 69,167 from year-8
and 41,666 from year-9
Notes—*Maximum + The balance of Rs. 1,10,000 set on from year-2 lapses.** Minimum
- Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 10, and there is no amount of sufficient amount carried forward and set on under sub-section (1) which could be utilized for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in the manner illustrated in the Fourth
- The principle of set on and set off as illustrated in the Fourth Schedule shall apply to all other cases not covered by sub-section (1) or sub-section (2) for the purpose of payment of bonus under this
- Where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into
Section 17 : Adjustment of customary or interim bonus against bonus payable under the Act.
Whether in any accounting year —
- an employer has paid any puja bonus or other customary bonus to aji employee; or
- an employer has paid a part of the bonus payable under this Act to an employee before the date on which such bonus becomes
then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Act in respect of that accounting year and the employee shall be entitled to receive only the balance.
Section 18 : Deduction of certain amounts from bonus payable under the Act.
Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then, it shall be lawful for the employer to deduct the amount of loss from the amount of bonus payable by him to the employee under this Act in respect of that accounting year only and the employee shall be entitled to receive the balance, if any.
Section 19 : Time-limit for payment of bonus.
All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his employer —
- where there is a dispute regarding payment of bonus pending before any authority under section 22, within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute;
- in any other case, within a period of eight months from the close of the accounting year:
Provided that the appropriate Government or such authority as the appropriate Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extended the said period of eight months to such further period or periods as it thinks fit; so, however, that the total period so extended shall not in any case exceed two years.
Section 20 : Application of Act to establishments in public sector in certain cases.
If in any accounting year an establishment in public sector sells any goods produced or manufactured by it or renders any services, in competition with an establishment in private sector, and the income from such sale or services or both less than twenty per cent of the gross income of the establishment in public sector for that year, then, the provision of this Act shall apply in relation to such establishment in public sector as they apply in relation to a like establishment in private sector.
Section 21 : Recovery of bonus due from an employer.
Where any money is due to an employee by way of bonus from his employer under a settlement or an award or agreement, the employee himself or any other person authorised by him in writing in this behalf, or in the case of the death of the employee/ his assignee or heirs may, without prejudice to any other mode of recovery, make an application to the appropriate Government or such authority as the appropriate Government may specify in this behalf is satisfied that any money is so due, it shall issue a certificate for that amount to the Collector who shall proceed to recover the same in the same manner as an arrears of land revenue.
Provided that every such application shall be made within one year from the date on which the money became due to the employee from the employer,
Provided further that any such application may be entertained after the expiry of the said period of one year, if the appropriate Government is satisfied that the applicant had sufficient cause for not making the application within the said period.
Explanation— In this section “employee” includes a person who is entitled to the payment of bonus under this Act but who is no longer in employment.
Section 32 : Act not to apply to certain classes of employees.
The Act shall not apply to —
- employees employed by any insurer carrying on general insurance business and the employees employed by the Life Insurance Corporation of India;
- seamen as defined in clause (42) of section 3 of the Merchant Shipping Act, 1958;
- employees registered or listed under any scheme made under the Dock Workers (Regulation of Employment) Act, 1948 and employed by registered or listed employers;
- employees employed by an establishment engaged in any industry carried on by or under the authority of any department of the Central Government or a State Government or a Local authority;
- employees employed by —
- the Indian Red Cross Society or any other institution of a like nature (including its branches);
- universities and other educational institutions;
- institutions (including hospitals, chambers of commerce and social welfare institutions) established not for purposes of profit;
- employees employed through contractor on building operations;
- employees employed by the Reserve Bank of India;
- employees employed by —
- the Industrial Finance Corporation of India;
- any Financial Corporation established under section 3, or any Joint Financial Corporation established under section 3A, of the State Financial Corporations Act, 1951;
- the Deposit Insurance Corporation;
- the National Bank for Agriculture and Rural Development;
- the Unit Trust of India;
- the Industrial Development Bank of India;
- the Small Industries Development Bank of India; (h) the National Housing Bank;
(i) any other financial institution [(other than a banking company)], being an establishment in public sector, which the Central Government may, by notification in the Official Gazette, specify, having regard to —
- its capital structure;
- its objectives and the nature of its activities;
- the nature and extent of financial assistance or any concession given to it by the Government; and
- any other relevant factor;
(xi) employees employed by inland water transport establishment operating on routes passing through any other country.