Labour~14 min read

Wages, Bonus, Gratuity, Maternity

Payment of Wages, Minimum Wages, Bonus, Gratuity, Maternity Benefit — numbers that MCQs love.

LawKey trigger / number
Payment of Wages Act, 1936Wage period ≤ 1 month; payment by 7th (if <1000 employed) or 10th day
Minimum Wages Act, 1948Appropriate government fixes min wages for scheduled employments; revises ≤ 5 years
Payment of Bonus Act, 196520+ employees; 8.33% min, 20% max; eligibility ₹21,000 wage ceiling; 30 days work
Payment of Gratuity Act, 197210+ employees; 5 years continuous service; 15 days wages × years; max ₹20 lakh
Maternity Benefit Act, 196110+ employees; 26 weeks leave (first two children); 6 weeks miscarriage; crèche 50+
  • Gratuity is payable even before 5 years in case of death or disablement.
  • Forfeiture of gratuity: wholly or partly for riotous conduct, violence, or offence involving moral turpitude in the course of employment.
  • Maternity: 12 weeks for woman with 2 or more surviving children; work-from-home may be allowed after the period; nursing breaks.
  • Bonus: available surplus and allocable surplus determine amount above the floor. Public sector and new establishments have special rules (s.16).
  • Code on Wages, 2019 subsumes Payment of Wages, Minimum Wages, Bonus and Equal Remuneration Acts — not fully enforced nationwide as a replacement yet; PYQs still test the parent Acts.

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