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| English: Logo of the United States Department of Labor (Photo credit: Wikipedia) |
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| May Day (International Labour Day) rally in Mumbai, India. (Photo credit: Wikipedia) |
THE PAYMENT OF BONUS
ACT, 1965
An Act to provide for the payment of Bonus to persons in
certain establishments on the basis of profits, production or productivity.
Extends to the whole of India.
Applies to every establishment wherein 20 or more are
employed
The Appropriate Govt. shall apply the Act to any other
establishment, including a factory to which the Factories Act, 1948 applies,
wherein less than 20 workers are employed provided the number of persons
employed is not less than 10.
Eligibility to Bonus
employee whose salary/ wages does not exceed Rs 10000 per
month
who has worked in the establishment for not less than 30
days
Not disqualified to claim bonus due to fraud, theft or any other
misconduct
Bonus of very person drawing salary between Rs 3500/- and Rs
10000/- per month shall be calculated as if his salary were Rs 3500 pm
For calculating the number of working days
the days for which the worker has been laid off
the days he has been on leave with pay
the days he has been absent due to temporary disablement
caused by an employment injury
the days a woman employee has been on maternity leave
shall be taken in to account.
Rate of Bonus
Minimum :8.33% of salary/wages
Maximum 20% of salary/wages
Computation of bonus as per Schedule I to IV of the Act.
Adjust any interim bonus paid while making payment of the
final bonus.
Disputes on Bonus
The Bonus Act does not provide for any machinery to resolve
disputes relating to bonus. For this, the Industrial Dispute Act shall be
referred to.
THE PAYMENT OF
GRATUITY ACT, 1972
