The payment of Bonus Act, 1965 aims to regulate the amount of bonus paid to the persons employed in certain establishments based on their profits and productivity. The act is applicable to the whole of India for all establishment containing twenty or more persons employed on any day during the year.
• It applies to any factory or establishment containing twenty or more workers employed on any day during the year. • The act does not apply to the non-profit making organizations. • It is not applicable to establishments such as LIC, hospitals which are excluded under section 32. • It is not applicable to establishments where employees have signed an agreement with the employer. • It is not applicable to establishments exempted by the appropriate government like sick units.
Any employee receiving salary or wages up to RS.21,000 per month and engaged in any work whether skilled, unskilled, managerial, supervisory etc. is entitled to the bonus for every year if the employees have worked for not less than 30 working days in the same year.
