Vidhi Codex

The Payment of Bonus Act, 1965

The Payment of Bonus Act, 1965

Labour196541 sections

This Act requires employers in factories and establishments with 20 or more workers to pay employees an annual bonus linked to profits or productivity. It sets out how gross profits and the available surplus are calculated, who is eligible and who is disqualified, and the minimum and maximum bonus payable. It applies to employees earning up to a set wage limit.

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  1. 1. Short title extent and application
  2. 2. Definitions
  3. 3. Establishments to include departments, undertakings and branches
  4. 4. Computation of gross profits
  5. 5. Computation of available surplus
  6. 6. Sums deductible from gross profits
  7. 7. Calculation of direct tax payable by the employer
  8. 8. Eligibility for bonus
  9. 9. Disqualification for bonus
  10. 10. Payment of minimum bonus
  11. 11. Payment of maximum bonus
  12. 12. Calculation of bonus with respect to certain employees
  13. 13. Proportionate reduction in bonus in certain cases
  14. 14. Computation of number of working days
  15. 15. Set on and set off of allocable surplus
  16. 16. Special provisions with respect to certain establishments
  17. 17. Adjustment of customary or interim bonus against bonus payable under the Act
  18. 18. Deduction of certain amounts from bonus payable under the Act
  19. 19. Time-limit for payment of bonus
  20. 20. Application of Act to establishments in public sector in certain cases
  21. 21. Recovery of bonus due from an employer
  22. 22. Reference of disputes under the Act
  23. 23. Presumption about accuracy of balance-sheet and profit and loss account of corporations and companies
  24. 24. Audited accounts of banking companies not to be questioned
  25. 25. Audit of accounts of employers, not being corporations or companies
  26. 26. Maintenance of registers, records, etc
  27. 27. Inspectors
  28. 28. Penalty
  29. 29. Offences by companies
  30. 30. Cognizance of offences
  31. 31. Protection of action taken under the Act
  32. 31A. Special provision with respect to payment of bonus linked with production or productivity
  33. 32. Act not to apply to certain classes of employees
  34. 33. Act to apply to certain pending disputes regarding payment of bonus
  35. 34. Effect of laws and agreements inconsistent with the Act
  36. 35. Saving
  37. 36. Power of exemption
  38. 37. Power to remove difficulties
  39. 38. Power to make rules
  40. 39. Application of certain laws not barred
  41. 40. Repeal and saving

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