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| Payment of Bonus Act, 1965 |
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| Applicability |
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(a) Every factory (as def.
in Factories Act), & (b) Every other establishment
in which 20 or more persons (less than 20 but 10
or more if appropriate Govt. notifies) are employed
on any day subject to certain exemptions.
ii) Employees' drawing remuneration of Rs.
3,500/- or more and those who have worked for less than
30 days are not eligible to receive bonus under
the Act.
iii) Bonus to be paid within eight months from
the expiry of the accounting year. |
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| Eligibility |
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i) Every person
(other than an apprentice) drawing salary up to
RS 3,500 per month.
Ii) Every person drawing salary between RS
2,501/- and RS 3,500/- per month. The bonus payable
to him is to be calculated as if his salary were
RS 2,500/- p.m. |
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| Benefits |
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i) Subject to other provisions
:— Minimum bonus shall be 8.33% of salary/wages
earned or RS 100 whichever is higher.
Ii) If allocable surplus exceeds the amount
of minimum bonus, then bonus shall be payable
at higher rate subject to a maximum 20% of salary/wages.
Iii) Computation of bonus is to be worked out
as per Schedule I to IV of the Act. |
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| Penal
Provisions |
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| Imprisonment up to 6 months and
or fine up to RS 1000/-. |
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