The Payment of Bonus Act, 1965

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.