Maternity, Gratuity & Wages Acts — Set 12
Labour Laws · प्रसूति, ग्रेच्युटी और मजदूरी अधिनियम · Questions 111–120 of 160
The Payment of Bonus Act excludes employees drawing wages above which monthly salary?
Correct Answer: C. Rs. 21,000
Under the Payment of Bonus Act, the statutory bonus is payable to employees drawing wages not exceeding Rs. 21,000 per month. This ceiling was revised from Rs. 10,000 to Rs. 21,000 by the Payment of Bonus (Amendment) Act 2015. For computing the bonus amount, the salary is capped at Rs. 7,000 or the minimum wage, whichever is higher. Employees drawing more than Rs. 21,000 are not entitled to statutory bonus.
Under the EPF Act, a member can withdraw from his EPF account for housing loan purposes under which provision?
Correct Answer: B. Rule 68-B
Under Rule 68-B of the Employees' Provident Fund Scheme, a member can withdraw up to 90% of their EPF accumulation for purchase or construction of a house or repayment of housing loan. The member must have completed 5 years of membership. The withdrawal is available only once in a lifetime for housing purposes. This provision helps EPF members in meeting their housing needs.
Under the Payment of Wages Act, an employer cannot deduct wages for damage to goods unless which condition is met?
Correct Answer: C. Deduction is limited to actual damage and employee given chance to explain
Section 10 of the Payment of Wages Act provides that deductions for damage or loss to goods expressly entrusted to the employee, or for loss of money for which he is required to account, shall not exceed the amount of damage or loss caused by him. Before making such deduction, the worker must be given an opportunity to explain. The deduction must be within the same wage period and not excessive.
The Minimum Wages Act does not apply to which category of workers?
Correct Answer: B. Domestic servants in private homes
The Minimum Wages Act applies to scheduled employments listed in the schedule. Domestic servants employed in private households are generally not covered by the central Minimum Wages Act, though some states may include them in their state schedules. Agricultural workers, beedi workers, construction workers, and many other categories are listed in the schedule. The schedule has been expanded over the years to cover more categories.
Under the Payment of Bonus Act, a new establishment is exempt from paying bonus for how many years?
Correct Answer: C. 5 years
Under Section 16 of the Payment of Bonus Act, new establishments are exempt from paying statutory bonus for the first five accounting years, unless they earn profits or generate allocable surplus in any of those years. However, if the new establishment earns a profit in any year within the first five years, it must pay bonus for that year. After five years, the full provisions of the Act apply.
Under the Payment of Gratuity Act, the employer must send an intimation to the employee about the amount of gratuity payable within how many days of the gratuity becoming payable?
Correct Answer: C. 30 days
Under Section 7(2) of the Payment of Gratuity Act, the employer shall determine the amount of gratuity payable to an employee and give notice in writing to the person to whom gratuity is payable and also to the Controlling Authority specifying the amount of gratuity so determined. This must be done within 30 days of the gratuity becoming payable. This ensures transparency and timely payment.
Under the EPF Act, an employee can withdraw PF for treatment of which disease?
Correct Answer: B. Major diseases requiring hospitalization including heart surgery
Under Rule 68-J of the EPF Scheme, a member can withdraw from their EPF account for medical treatment of self or family member for specific conditions including TB, leprosy, paralysis, cancer, mental illness, heart surgery, and major surgeries requiring hospitalization. The member need not have completed any minimum service period for medical withdrawals. This provision helps in times of medical emergency.
The Employees' Pension Scheme under the EPF Act provides which types of pensions?
Correct Answer: C. Superannuation, early, widow/widower, children, and orphan pensions
The correct answer is Superannuation, early, widow/widower, children, and orphan pensions. The Employees' Pension Scheme 1995 provides for various types of pensions: (1) Superannuation pension (normal retirement at 58), (2) Early pension (from 50, with reduction), (3) Widow/widower pension on member's death, (4) Children pension for up to 2 children until 25 years of age, (5) Orphan pension if both parents are deceased. The maximum number of types ensures comprehensive coverage for the member's family. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Payment of Wages Act requires that wages are paid only through which type of currency?
Correct Answer: C. Current coin or currency notes or cheque or bank transfer
The Payment of Wages Act stipulates that wages must be paid in current coin or currency notes or by cheque or by crediting to the bank account of the employee. Payment in kind (commodity wages) is expressly prohibited under the Act. This ensures that workers receive wages in a form that is universally acceptable and can be used for any purpose. The Act prohibits truck system of payment.
Under the Payment of Bonus Act, which employees are excluded from the coverage?
Correct Answer: B. Apprentices under the Apprentices Act and employees of Central/State Government
Under Section 32 of the Payment of Bonus Act, employees employed by the Central Government or a State Government, apprentices registered under the Apprentices Act 1961, and certain other categories are excluded from the coverage of the Act. LIC employees also have a separate bonus scheme. Railway employees governed by separate legislation are also excluded. This ensures appropriate coverage for workers.