An employee engaged in an industrial establishment draws wages of Rs. 20,500 per month. What is the amount of bonus to be paid to him if it is paid at the rate of 10% by the employer for an accounting year under the Payment of Bonus Act, 1965?
A. Rupees nine thousand two hundred only
B. Rupees eight thousand four hundred only
C. Rupees ten thousand two hundred fifty only
D. Rupees nine thousand six hundred only
Answer: Option B
Solution (By Examveda Team)
Under the Payment of Bonus Act, 1965, there is a salary ceiling of Rs. 7,000 per month (or the minimum wage, whichever is higher) for calculating bonus, even if the actual salary is higher.In this case:
Employee's actual salary: Rs. 20,500 per month (which exceeds the ceiling)
Salary considered for bonus calculation: Rs. 7,000 per month (as per the Act)
Bonus rate: 10%
Bonus = 10% of (Rs. 7,000 × 12 months)
Bonus = 10% of Rs. 84,000 = Rs. 8,400
Therefore, even though the employee earns Rs. 20,500 per month, the bonus is calculated on Rs. 7,000 per month, resulting in a bonus amount of Rs. 8,400 only.
This Question Belongs to Management >> Labour And Social Welfare
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Labour movement became a vigorous force in India after . . . . . . . .
A. World War I
B. World War II
C. Panipat War I
D. Panipat War II
A. Improvement in working conditions
B. Adequate wages
C. Provision of rest pauses
D. All of the above
Which of the following recommendations were made by National Commissionon Labour in 1969?
A. Intensification by workers education to get good internal leader
B. The idea of one union for one plant
C. The compulsion of registration under the Trade Union Act, 1926
D. All of the above
A. INTUC, AITUC, NFITU
B. AITUC, NFL, BMS, NLO
C. INTUC, AITUC, HMS, UTUC
D. BMS, HMS, CITU, TUCC
How the answer 8400 came