✔ The Payment of Bonus Act, 1965 is a federal law in India that mandates payment of bonuses to employees of certain establishments.
✔ The Act applies to establishments employing 20 or more employees, and the bonus must be paid out of profits or on a pro-rata basis in case of non-profitable organizations.
✔ The Payment of Bonus Act, 1965 provides for a minimum bonus of 8.33 percent of wages.
✔ The bonus awarded to employees drawing wages or salary that does not exceed Rs. 10,000 per month will be computed as if their wage or salary is Rs. 3,500 per month. The salary limited fixed for eligibility purposes is Rs. 3,500 per month.
Employers covered under the Bonus Act, 1965 are required to register their establishments with the appropriate authorities. The registration process usually involves submission of certain details such as the name of the establishment, address, nature of business, and the number of employees.
To comply with the provisions of the Bonus Act, 1965, employers must calculate the bonus due to their employees and pay it within the specified time frame. Employers must also maintain accurate records of bonuses paid to employees and produce them for inspection by the relevant authorities, if required.
| Employees may be disqualified from receiving a bonus for a variety of reasons, including but not limited to: | |||||
| Poor job performance or failure to meet job expectations | |||||
| Violation of company policies or ethical standards | |||||
| Taking excessive absences or being frequently late | |||||
| Failing to complete tasks or projects on time | |||||
| Engaging in misconduct or illegal activities. | |||||
