Hello all ,
Please guide me on following problem-
I came acroos the following problem, So please what is the actual limit applicable for Nov. 10 IPCE Exam,
Book also contains that limit for employee drawaing salry is upto 10000.And ceiling is on 3500 salry.
Are these chnged or not.Because in one more case study i found the limit of 2500 instead of 3500
Q. An employee drawing a salary of Rs. 5,000 per month is entitled to Bonus.
True/false.
Sol.: False. As per the Payment of Bonus Act, 1956, an employee employed on a salary or
wage not exceeding Rs. 3,500 per month is entitled to Bonus.
Q.2
Q.No.6. Mr. Sharma is a supervisor in a factory drawing a salary of Rs.3,500 per month. In a particular accounting year he was on one month leave with salary. His employer declared minimum bonus as per the Payment of Bonus Act, to all eligible employees. State in this connection:
a. What shall be the salary that shall be taken into account for the purpose of calculating bonus payable to him?
b. What shall be the total bonus payable to him in that accounting year?
c. What would be your answer if the company suffers losses in that accounting year?
d. Is bonus payable to him if he was illegally terminated?
Sol.:
a. Where the salary or wage of an employee exceeds Rs.2,500 (NOW,3500) per month, the bonus payable to such employee shall be calculated as if his salary or wages were Rs.2,500 per month. In the instant case, Mr. Sharma is drawing a salary of Rs.3,500 per month. For the purpose of bonus his salary shall be taken at Rs.2,500 per month.
b. The total bonus payable to him in that accounting year shall be Rs.2,500 X 12 X 8.33%. For the purpose of calculating the total working days, leave with salary or wages shall be deemed to the working days of an employee. (Sec.14)
c. Even if the company suffers losses, the employer has to pay the minimum bonus.
Where an employee was prevented from working by reason of an illegal order of termination, Sec.13 and 14 do not apply. .
Please guide me friends.
CAclubindia
