Labour~14 min read
Wages, Bonus, Gratuity, Maternity
Payment of Wages, Minimum Wages, Bonus, Gratuity, Maternity Benefit — numbers that MCQs love.
| Law | Key trigger / number |
|---|---|
| Payment of Wages Act, 1936 | Wage period ≤ 1 month; payment by 7th (if <1000 employed) or 10th day |
| Minimum Wages Act, 1948 | Appropriate government fixes min wages for scheduled employments; revises ≤ 5 years |
| Payment of Bonus Act, 1965 | 20+ employees; 8.33% min, 20% max; eligibility ₹21,000 wage ceiling; 30 days work |
| Payment of Gratuity Act, 1972 | 10+ employees; 5 years continuous service; 15 days wages × years; max ₹20 lakh |
| Maternity Benefit Act, 1961 | 10+ 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.
Video Lectures & Explanations
Curated educational video lectures explaining this topic for UPSC EPFO
Sleepy Classes
Payment of Wages, Minimum Wages & Bonus Act Masterclass
Focus: Authorized deductions, scheduled employment, 8.33% to 20% bonus formula
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StudyIQ IAS
Payment of Gratuity Act 1972 & Maternity Benefit Act 2017
Focus: Continuous service 240 days (Section 2A), 15/26 formula, 26 weeks paid maternity leave
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