Payment Of Bonus Act 1965

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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

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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.