Payment of bonus act,1948

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J YAMINI (Querist)
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06 February 2010 What is factory according to the payment of bonus act,1948?Does it includes only manufacturing process or it will activities like packing etc.,
Even if a person get a salary of Rs.10000/- for him the minimum bonus will be calculated only from the Rs.3500/-?

Rahul Gupta

Rahul Gupta (Expert)
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07 February 2010 Definition of Factory > "Factory" means any premises including the precincts thereof - (i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or
(ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952), or a mobile unit belonging to the armed forces of the union, a railway running shed or a hotel, restaurant or eating place;

Manufacturing includes packing also. Provisions >
"manufacturing process" means any process for - (i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal.

Yes. For calculating Bonus, salary will be considered as Rs 3,500. the provisions are >
Where the salary or wages of an employee exceeds three thousand and five hundred rupees per month, the bonus payable to such employee shall be calculated as if his salary or wages were three thousand and five hundred rupees per month