Payment
of Bonus Act, 1965
|
Applicability
(a) Every factory (as def. in Factories
Act), & (b) Every other establishment
in which 20 or more persons (less than
20 but 10 or more if appropriate Govt.
notifies) are employed on any day subject
to certain exemptions.
ii) Employees' drawing remuneration
of Rs. 3,500/- or more and those who have
worked for less than 30 days are
not eligible to receive bonus under the
Act.
iii) Bonus to be paid within eight
months from the expiry of the accounting
year.
Eligibility
i) Every person (other than an apprentice)
drawing salary up to RS 3,500 per month.
Ii) Every person drawing salary between
RS 2,501/- and RS 3,500/- per month. The
bonus payable to him is to be calculated
as if his salary were RS 2,500/- p.m.
Benefits
i) Subject to other provisions :—
Minimum bonus shall be 8.33% of salary/wages
earned or RS 100 whichever is higher.
Ii) If allocable surplus exceeds
the amount of minimum bonus, then bonus
shall be payable at higher rate subject
to a maximum 20% of salary/wages.
Iii) Computation of bonus is to be worked
out as per Schedule I to IV of the Act.
Penal
Provisions
Imprisonment up to
6 months and or fine up to RS 1000/-.
