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CS Executive · Setting Up of Business, Industrial and Labour Laws · Constitution and Labour Laws

Meera, a compliance officer at a Pune manufacturing firm, wants to know where provisions on payment of bonus, earlier found in the Payment of Bonus Act, 1965, now sit. Which Code applies?

Bonus provisions now sit in the Code on Wages, 2019. That Code subsumed the Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act and Equal Remuneration Act. The Social Security Code covers gratuity, provident fund and similar benefits, not bonus.

  1. AThe Code on Social Security, 2020
  2. BThe Industrial Relations Code, 2020
  3. CThe Occupational Safety, Health and Working Conditions Code, 2020
  4. DThe Code on Wages, 2019Correct

Explanation

The Code on Wages, 2019 subsumed the Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act and Equal Remuneration Act. So bonus provisions are in the Wages Code. The Social Security Code covers gratuity, PF and ESI-type benefits, which is the likely confusion.

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