Payment Of Bonus Act 1965

Payment Of Bonus Act 1965

The Act Applies to all Factories and every other establishments, which employs twenty or more workmen. The Payment of Bonus Act, 1965 provides for a minimum bonus of 8.33 percent of wages. The salary limited fixed for eligibility purposes is Rs. 3,500 per month and the payment is subject to the stipulation that the bonus payable to employees drawing wages or salary not exceeded to Rs.10000 per month would be calculated as if their salary or wages is Rs. 3,500 per month. The Central Government is the appropriate authority in respect of the industries /establishments for which it is appropriate Government under the industrial Disputes Act, 1947.

  • Applicability
  • To every factory
    To other establishments provided employing 10 or more persons
    Once applicable remains applicable
    Employee is entitled for bonus provided worked for minimum 30 days and rate of salary (Basic + DA) is below Rs. 10,000/- pm in a financial year

  • Requirements
  • Maintenance of A & B registers based on balance sheet and income tax rules
    Maintenance of C register i.e. disbursement of bonus to employees
    Annual return in Form no. D

  • Consequences
  • Provisions of payment of bonus, if not paid according this enactment punishment of imprisonment or fine are in the enactment

Services We Offer

  • Providing consultancy and guidance regarding rules pertaining to Payment of Bonus
  • Assistance in maintaining the Bonus Register (Register C)
  • Preparation & Submission of Annual return as prescribed under the act
  • Assistance in ensuring compliance of various provisions of the act related to disclosures, notices, displays, etc.

Central & State Specific Labour Laws & Rules

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