BONUS ACT 1965

BONUS Act 1965

Bonus Act, 1965 aims is to regulate the amount of bonus paid to the persons employed in certain establishments based on their profits and productivity. This act is applicable to the whole of India for all establishment containing twenty or more persons employed on any day during the year. 

1.   Bonus is Paid on Basic salary

2.   Higher limit celling for Bonus is 21000 i.e. your basic should be less than 21000

3.   Paid percentage is from 8.33% to 20%

Who is Bonus applicable to.

1.   The company is at least 5 year Old

2.   They has at least 20 Employees

3.   The company has made a profit in that year

4.   The employees’ wages are not more than 21000 every month

5.   Employee who has work under establishment not less than 30 Days.

Disqualification for Bonus.

1.   An employee shall be disqualified from receiving Bonus under this Act, if he is dismissed from service for fraud.

2.   violent behavior while on the premises of the establishment

3.   Theft, misappropriation or sabotage of any property of the establishment

How do you make Payment.

•  Payment of Bonus for financial year has to be made within 8 month of its completion

• Since the financial year in India end in March payment have to made by the end of October.