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CS Professional · Labour Laws and Practice · Law of Wages

Kalyani Foods paid its employee Meera a puja bonus of Rs 3,000 in October. At the end of the accounting year, the bonus payable to Meera under the Code on Wages is computed at Rs 9,500. What amount is she entitled to receive at year end?

Meera is entitled to Rs 6,500. A puja or other customary bonus paid in the accounting year can be deducted from the bonus payable under the Code, and the employee receives only the balance. Rs 9,500 less Rs 3,000 is Rs 6,500.

  1. ARs 9,500
  2. BRs 12,500
  3. CRs 6,500Correct
  4. DRs 3,000

Explanation

Section 37 lets the employer deduct puja or other customary bonus already paid from the bonus payable under the Code for that year, and the employee receives only the balance. Rs 9,500 minus Rs 3,000 equals Rs 6,500. Rs 12,500 wrongly adds the amounts.

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