Bonus Act’1965

Payment of Bonus Act

The Act Applies to all Factories and every other establishments, which employs twenty or more workmen. The Act provides minimum 8.33% of salary for wages earned in the year is the minimum bonus required to be paid even if there is loss incurred in that year Maximum bonus is 20% of the salary or wages earned in the year.

Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.

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