The Payment of Bonus Act, 1965
The Payment of Bonus Act is an Indian Labour Law which ensures that employers pay bonuses to their employees as a form of social security.
Summary
The Payment of Bonus Act, 1965 is an important Indian Labour Law that ensures employers pay bonuses to their employees as a form of social security. The Act applies to employees who earn a salary or wage of INR 21,000 or less per month and are employed in a factory or establishment that employs at least 20 people. The Act ensures that a minimum bonus is paid to eligible employees, which is calculated as a percentage of their salary or wage earned during the accounting year. The Act also outlines the conditions under which an employer can deduct certain amounts from the bonus amount payable to an employee. Non-compliance with the provisions of this Act can result in penalties and legal action against the employer.
Table of Contents
| # | Section | Link |
|---|---|---|
| 1 | Section 1: Short Title, Extent And Application | Open |
| 2 | Section 2: Definitions | Open |
| 3 | Section 3: Establishments To Include Departments, Undertakings And Branches | Open |
| 4 | Section 5: Computation Of Available Surplus | Open |
| 5 | Section 6: Sums Deductible From Gross Profits | Open |
| 6 | Section 7: Calculation Of Direct Tax Payable By The Employer | Open |
| 7 | Section 10: Payment Of Minimum Bonus | Open |
| 8 | Section 11: Payment Of Maximum Bonus | Open |
| 9 | Section 12: Calculation Of Bonus With Respect To Certain Employees | Open |
| 10 | Section 14: Computation Of Number Of Working Days | Open |
| 11 | Section 15: Set On And Set Off Of Allocable Surplus | Open |
| 12 | Section 16: Special Provisions With Respect To Certain Establishments | Open |
| 13 | Section 17: Adjustment Of Customary Or Interim Bonus Against Bonus Payable Under The Act | Open |
| 14 | Section 19: Time-Limit For Payment Of Bonus | Open |
| 15 | Section 20: Application Of Act To Establishments In Public Sector In Certain Cases | Open |