THE EMPLOYEES PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT-1952

Applicability of the Act
It extends to the whole of India except the state of Jammu & Kashmir and is applicable to:

(a) every factory engaged in any industry specified in Schedule 1 in which 20 or more persons are employed,

(b)every other establishment employing 20 or more persons or class of such establishment which the central overnment may notify,

(c) any other establishment so notified by the central government even if employing less than 20 persons.

Eligibility of Employee
An employee is eligible for Membership of the Fund if his salary (basic + D. A.) does not exceed Rs.7,500 per month.

Rate of Contribution
Rate of contribution is 12% of Employees Basic pay,dearness allowance with an equal amount of contribution by an employer.

PAYMENT OF GRATUITY ACT, 1972

Applicability of the Act

It applies to:
(a) every factory (as defined in Factories Act),mine,oilfield,plantation,port & railway.

(b) every shop or establishment to which shops & establishment act of a state applies in which 10 or more persons are employed at any time during the year end.

(c) any establishment employing 10 or more persons as may be notified by the central government.

Eligibility of Employee
Gratuity is payable to an employee, if he has rendered continous service for not less than 5 years However, when an employee terminates his employment due to death/disablement, the completion of continuos service of 5 years is not necessary.

Amount of Gratuity

i) In case of seasonal establishment gratuity shall he payable @ 7 days wages for each season.
ii) In case of other establishment gratuity shall be payable @ 15 days wages for each year of' service or part there of in excess of 6 months.
iii) The maximum amount of gratuity payable shall not exceed Rs.3,50,000

Payment of Gratuity

Gratuity shall be payable to an employee:
i) On his superannuating.
ii) On his retirement or resignation.
iii) On his death or disablement due to accident or disease

PAYMENT OF BONUS ACT-1965

Applicability of the Act

It extends to the whole of India & apply to:

(a)every factory,

(b)every other establishment in which 20 or more person's are employed on any day during the accounting year.

Eligibility of Employee

An employee shall be entitled to Bonus if he has worked for not less than 30 working days in the year and his salary does not exceed Rs.3,500/- per month.

Determination & payment of Bonus

a) Minimum Bonus 8.33% of the salary

b) Maximum Bonus 20% of the salary  

Proportionate reduction in Bonus  

Where an employee has not worked for all the working days in an accounting year, the amount payable as bonus shall be reduced proportionately

Disqualification of the employee

An employee shall be disqualified to receive bonus if he is dismissed from the service for

•  Fraud.

•  Riotous or violent behaviour.

•  Theft or misappropriation of cash or goods.