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Payment of Bonus Act,1965

Applicability


(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.

 

Eligibility

 

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.

 

Benefits


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.

 

Penal Provisions


Imprisonment up to 6 months and or fine up to RS 1000/-

 

Maintenance of registers

 

Every employer shall prepare and maintain the following registers, namely:-

(a)    a register showing the computation of the allocable surplus referred to in clause (4) of section 2, in form A:

(b)    a register howing the set-on and set-off of the allocable surplus, under section 15, in form B.

(c)    a register showing the details of the amount of bonus due to each of the employees, the deductions under sections 17 and 18 and the amount actually disbursed, in Form C.

 

Annual returns

 

Every employer shall send a return in Form D to the Inspector so as to reach him within 30 days after the expiry of the time limit specified in section 19 for payment of bonus.

 


Forms & Registers