THE PAYMENT OF BONUS ACT, 1965
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 there with.
The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act. The maximum bonus including productivity linked bonus that can be paid in any accounting year shall not exceed 20% of the salary/wage of an employee under the section 31 A of the Act.
|S.No||Year of Amendment||Eligibility limit (Rs. Per Month)||Calculation ceiling (Rs. Per Month)|
|3.||1995||Rs. 3500||Rs. 2500|
|4.||2007||Rs. 10000||Rs. 3500|
|5.||2015||Rs. 21000||Rs. 7000 Or the minimum wage for scheduled employment, as fixed by the appropriate Government, whichever is higher.|