Ram is working in a factory employing 30 persons. The gross salary of Ram is ₹20,000 per month. He has worked for 60 days in the year 2019-20. In the light of provisions of Payment of Bonus Act, 1965, examine whether Ram

Payment of Bonus Act, 1965 is applicable to the establishment in which 20 or more persons are employed on any day during an accounting year. (Appropriate Government may specify lesser no. of employees). Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year. According to Section 2(13) of the Act, "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding twenty-one thousand rupees per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied. In view of the above Ram is eligible for payment of bonus for the year 2019-20 under the provisions of Payment of Bonus Act, 1965.