THE PAYMENT OF BONUS ACT, 1965

This Act applies to: (i) every factory; and (ii) every other establishment employing twenty (20) or more persons.

The Act provides for minimum and maximum bonus. The minimum bonus payable to an employee is 8.33% of his wages in the financial year or Rs.100/- whichever is higher & maximum bonus is 20%. Presently an employee drawing wages upto Rs.10,000/- per month is entitled to bonus on the basis of calculation of his wage upto Rs.3500/- per month.