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THE PAYMENT OF BONUS ACT, 1965. (21 OF 1965) [ 25th September, 1965.] [An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.]
So, the government introduced a regulation and made it mandatory for the employers to pay out a certain percentage of their profit as a bonus. This regulation is called the Payment of Bonus Act, 1965. As per the act, bonus should be paid at the minimum rate of 8.33% and the maximum rate of 20%.
Dec 6, 2019 · The Payment of Bonus Act, 1965 seeks to legally regularise the practice of paying bonus by different establishment. It offers an objective way to calculate the bonus based on profit and productivity. It enables the employees to earn over and above their minimum wages or salary.
impose a statutory obligation on an employer of every establishment covered by the Act to pay bonus to employees in the establishment; lay down principle and formula for calculation of bonus; provide for payment of minimum and maximum bonus and linking the payment of bonus with the scheme of set-on and set-off; and.
The Payment of Bonus Act, 1965 provides for a minimum bonus of 8.33 percent of wages. The salary limited fixed for eligibility purposes is Rs. 3,500 per month and the payment is subject to the stipulation that the bonus payable to employees drawing wages or salary not exceeded to Rs.10000 per month would be calculated as if their salary or ...
Jun 27, 2024 · Under the Payment of Bonus Act, 1965, certain categories of employees are entitled to receive a statutory bonus calculated by reference to the employee’s salary and the employer’s profits. The Act applies in respect of factories and establishments with 20 or more employees (or in some states, factories and establishments with 10 or more employees).
The Payment of Bonus Act, 1965 provides for the payment of bonus to persons employed in certain establishments, employing 20 or more persons, on the basis of profits or on the basis of production or productivity and matters connected therewith. The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act.
Mar 13, 2012 · For calculation purposes Rs.3500 per month maximum will be taken even if an employee is drawing upto Rs.3500 per month. (Sec. 12) Time Limit for Payment of Bonus : Within 8 months from the close of accounting year. (Sec. 19) Set-off and Set-on : As per Schedule IV. Sec. 15.
Mar 21, 2022 · False, as per the Payment of Bonus Act, 1965, an employee employed on a salary not exceeding Rs. 10,000 per month is entitled to Bonus. As per the Payment of Bonus (Amendment) Act, 2015, the eligibility limit for payment of bonus has been enhanced from Rs. 10, 000 to Rs. 21,000 per mensem.
Calculation of bonus: As per the amendment on the Payment of Bonus Bill passed in 2015, when wages or salary exceeds ₹7000 or the minimum wages fixed by the government, bonus will be payable on ₹7000 or the minimum wages as fixed by govt., whichever is higher. Examples: Salary (Basic + DA) = ₹6000, Min Wages = ₹8000, Bonus will be payable on ₹8000.
