MCQs on Payment of Bonus Act 1965

1. Which of the following statements is not correct as per the Payment of Bonus Act, 1965?
(a) It is applicable to construction industry.
(b) It does not apply to employees in Life Insurance Corporation of India.
(c) Allocable surplus means 67% of the available surplus.
(d) Employee means any person including apprentice.

2. The ceiling on wage or salary for calculation of Bonus under the Payment of Bonus Act 1965 is
(a) Rs. 2,500
(b) Rs. 3,500
(c) Rs. 4,500
(d) Rs. 6,500

3. Under the payment of Bonus Act, 1965, the gross profits derived by an employer from an establishment in respect of any accounting year shall be computed
(a) In case of Banking Company according to schedule II and in any other case schedule I.
(b) In case of Banking Company according to schedule I and in any other case schedule II.
(c) In case of Banking Company and in any other case schedule I.
(d) In case of Banking Company and in any other case schedule II.

4. The Payment of Bonus Act, 1965 is applicable to an employee who draws wage or salary of
(a) Rs. 3500 in case of apprentice
(b) Rs. 5000 in case of apprentice and employee
(c) Rs. 7500 in case of employee only
(d) Rs. 10,000 in case of employee only

5.Payment of Bonus Act 1965 is applicable to every factory and to every other establishment where ---------- workmen are employed on any day during an accounting year
(a) 20 or more
(b) 10 or more
(c) 50 or more
(d) 30 or more

6.Every employee receiving salary or wages upto RS. 3,500 p.m. and engaged in any kind of work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every accounting year if he has worked for at least ---------- days in that year.
(a) 15 working days
(b) 30 working days
(c) 60 working days
(d) 90 working days

7. The minimum bonus which an employer is required to pay even if he suffers losses during the accounting year or there is no allocable surplus is --------- % of the salary or wages during the accounting year
(a) 10%
(b) 20%
(c) 8.33 %
(d) 6.33%

8. If in an accounting year, the allocable surplus calculated after taking into account the amount ‘set on’ or the amount ‘set of’ exceeds the minimum bonus, the employer should pay bonus in proportion to the salary or wages earned by the employee in that accounting year subject to a maximum of ------- % of such salary or wages.
(a) 25%
(b) 30%
(c) 10%
(d) 20%

9.The bonus should be paid in cash within ----------- months from the close of the accounting year
(a) 8 months
(b) 6 months
(c) 12 months
(d) 3 months

10.An employer has the following rights:
  1. Right to forfeit bonus of an employee, who has been dismissed from service for fraud, riotous or violent behaviour, or theft, misappropriation or sabotage of any property of the establishment.
  2. Right to make permissible deductions from the bonus payable to an employee, such as, festival/interim bonus paid and financial loss caused by misconduct of the employee.
  3. Right to refer any disputes relating to application or interpretation of any provision of the Act, to the Labour Court or Labour Tribunal.
(a) 1 & 2
(b) 1, 2 & 3
(c) 2 & 3
(d) 1 & 2

11. The employer has to submit an annul return of bonus paid to employees during the year, in Form D, to the Inspector, within ---------- of the expiry of the time limit specified for payment of bonus.
(a) 10 days
(b) 20 days
(c) 30 days
(d) 60 days

12.The contravention of the provisions of the Act or rules may attracts the punishment of 
(a) imprisonment upto 3 months, or fine up to Rs.500, or both
(b) imprisonment upto 2 months, or fine up to Rs.1000, or both
(c) imprisonment upto 6 months, or fine up to Rs.10000, or both
(d) imprisonment upto 6 months, or fine up to Rs.1000, or both

13. Excess allocable surplus remain after paying the maximum bonus of 20% on the wage or salary of the employee, should be carried forward to the next following year for utilizing the payment of bonus in case of the shortage of the allocable surplus or losses occur. This is called as 
(a) Set-On 
(b) Set-Off
(c) Take-On 
(d) Set-Off

14. Which section states about the classes of employees where Payment of Bonus Act is not applicable?
(a) Section 16
(b) Section 32
(c) Section 22
(d) Section 30

15.When there are no profits or the amount falls short or deficiency for payment of minimum bonus to employees, such deficiency amount should be adjusted to the current accounting year from the Set-On amount which was carried forward in case of excess allocable surplus in the previous year. This is called as . 
(a) Set-On
(b) Set-Off
(c) Take -On
(d) Take -Off


1 comment:

  1. Really helful questions but kindly update Question No. 1,2 & 4 ...


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