1. Payment of Bonus Act, 1965 OnkarSatam KantilalKamble Anit Nair Labour Legislations Presentation SYMMS

2. Objective “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.” LabourLegislations Presentation SYMMS

4. Establishments once covered under this act will continue to be covered even if the number of employees fall below 20 subsequently.LabourLegislations Presentation SYMMS

6. Includes Supervisors, Managers & Administrative staff

7. Person who has worked for minimum of 30 days in an accounting year

8. Person with a maximum salary of 10,000 per monthLabourLegislations Presentation SYMMS

9. Trivia Can a person drawing wages more than 10000 per month make a claim for Bonus under any special circumstance? LabourLegislations Presentation SYMMS

10. Answer No. It is nor maintainable under the Act LabourLegislations Presentation SYMMS

12. Maximum of 20% and minimum of 8.33% of salary can be paid as bonus.

13. Maximum amount of payable bonus is limited to Rs. 84000. (3500 x 12 x 20/100)LabourLegislations Presentation SYMMS

15. 60% of Available Surplus = Allocable Surplus

16. Bonus to be paid irrespective of the availability of Allocable Surplus

17. Bonus to be paid within maximum of 8 months after the end of the accounting period.LabourLegislations PresentationSYMMS

19. The excess amount is carried forward as Set On to the next accounting year

20. Amount carried forward to maximum of and including the fourth accounting yearLabourLegislations Presentation SYMMS

22. The balance amount is carried forward to the next accounting year to be Set Off in the next bonus payments.

23. Set Off amount carried forward for maximum of and including 4th accounting year.

24. The Set Off amount of earliest year is taken into account first. LabourLegislations Presentation SYMMS

25. Trivia Can Bonus be denied to an employee on the condition that he was not in employment on the day of declaration of Bonus? LabourLegislations Presentation SYMMS

26. Answer No. It violates the provisions of Section 8 of the Payment of Bonus Act. LabourLegislations Presentation SYMMS

28. Bonus to be paid necessarily only in profit making accounting years

29. 6th Year- Set On & Set Off to be considered for the 5th and 6th years

30. 7th Year- Set On & Set Off to be considered for 5th, 6th & 7th years

31. Establishment not deemed to be newly set up merely by reason of a change in its location, management, name or ownership.LabourLegislations Presentation SYMMS

32. Contracting Out A contract signed between an employer and an employee provisioning for non payment of bonus as per the Bonus Act stand void. Every employee eligible under the act has to be paid Bonus. LabourLegislations Presentation SYMMS

33. Trivia Is a person employed on probationary basis eligible for payment of Bonus? LabourLegislations Presentation SYMMS

34. Answer Yes a person on probation is eligible for Bonus, as a probationer has not been excluded from the provisions of the Act pertaining to definition of ‘Employee’. LabourLegislations Presentation SYMMS

36. Employee or person authorized by him can apply for the recovery of bonus

37. In case of death of employee the legal heir may apply for collection

38. Application to be maid to appropriate Govt.

39. If accepted by the government, the money is recovered from employer

40. Application to be made within one year of the due date of bonus payment

41. Late applications accepted by government if reason for delay acceptableLabourLegislations Presentation SYMMS

43. Theft

44. Misappropriation

45. Sabotage of property of the establishmentSection 9 of the Bonus Act gives this provision LabourLegislations Presentation SYMMS

46. Thank You LabourLegislations Presentation SYMMS