Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 — section 10C

10C. Payment of bonus..—(1) Every employer making profit in any year shall pay 6[for that year within three months of the closing of] that year to the workman who have been in his employment in that year for a continuous period of not less than ninety days a bonus in addition to the wages payable to such workmen.

(2)The amount of the bonus payable shall

(a)if the amount of the profit is not less than the aggregate of one month’s wages of the workmen employed, be not less than the amount of such aggregate, subject to the maximum of thirty percent of such profit; 1 Inserted by the Labour Laws (Amendment) Ordinance, 1972 (Ordinance No. IX of 1972), Article 2 read with First Schedule. 2 Inserted by the Labour Laws (Amendment) Act, 1976 (Act No. XI of 1976), s. 2 read with Schedule. 3 Substituted by the Federal Adaptation of Laws Order, 1975 (P. O. No. 4 of 1975), Article 2 read with Schedule. 4 Added by Act No. XLVIII of 1974, s. 3. 5 Inserted by the Labour Laws (Amendment) Ordinance, 1972 (Ordinance No. IX of 1972), Article 2 read with First Schedule. 6 Substituted Act No. XXIII of 1973, s. 6. 1 [Illustration 1.__ If the profit is Rs. 1,20,000.00 and the aggregate of one month’s wages of the workmen is Rs. 30,000.00, the amount of bonus payable shall be not less than the aggregate of one month’s wages, that is to say Rs. 30,000.00. Illustration 2.__ If the profit is Rs.30,000.00 and the aggregate of one month’s wages of the workmen is also Rs.30,000.00, the amount of bonus payable shall be not less than thirty per cent of the profit, that is to say Rs. 9,000.00.]

(b)if the amount of the profit is less than the aggregate referred to in paragraph (a), be not less than fifteen per cent of such profit.

(3)The bonus payable to a workman entitled thereto under clause (1) shall bear to his monthly wages the same proportion as the total bonus payable by the employer bears to the aggregate of the wages referred to in paragraph (a) of clause (2) and shall be paid either in cash or in N. I. T. Units of equivalent value at the option of such workman.

(4)Nothing in this section shall be deemed to affect the right of any workman to receive any bonus other than that payable under clause (1) to which he may be entitled in accordance with the terms of his employment or any usage or any settlement or an award of a Labour Court established under the Industrial Relations Ordinance, 1969 (XXIII of 1969). Explanation.__ For the purpose of this section,

(a)“N. I. T. Units” means the Units referred to in the National Investment (Unit) Trust Ordinance, 1965 (VII of 1965);

(b)“Profit” means the “net profits” as defined in section 87C of the Companies Act, 1913 (VII of 1913); and

(c)“Wages” does not, for the purpose of calculating the bonus payable to a person under clause (1), include the bonus referred to in clause (vi) of section 2 of the payment of Wages Act, 1936 (IV of 1936).]