SectionsParticulars
1Short title, extent and application
(1) This Act may be called the Payment of Bonus Act, 1965. (2) It extends to the whole of India 2[***]. (3) Save as otherwise provided in this Act, it shall app...
2Definitions
In this Act, unless the context otherwise requires, (1) "accounting year" means,- (i) in relation to a corporation, the year ending on the day on which the boo...
3Establishments to include departments, undertakings and branches
Where an establishment consists of different departments or undertakings or has branches, whether situated in the same place or in different places, all such ...
4Computation of gross profits
The gross profits derived by an employer from an establishment in respect of the accounting year shall,- (a) in the case of a banking company, be calculated i...
5Computation of available surplus
The available surplus in respect of any accounting year shall be the gross profits for that year after deducting there from the sums referred to in section 6:...
6Sums deductible from gross profits
The following sums shall be deducted from the gross profits as prior charges, namely:- (a) any amount by way of depreciation admissible in accordance with the...
7Calculation of direct tax payable by the employer
12[Any direct tax payable by the employer for any accounting year shall, subject to the following provisions, be calculated at the rates applicable to the inc...
8Eligibility for bonus
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 worke...
9Disqualification for bonus
Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for,- (...
10Payment of minimum bonus
Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day i...
11Payment of maximum bonus
(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees unde...
12Calculation of bonus with respect to certain employees
Where the salary or wages of an employee exceeds two thousand and five hundred rupees per mensem, the bonus payable to such employee under section 10 or, as ...
13Proportionate deduction in bonus in certain cases
Where an employee has not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rup...
14Computation of number of working days
For the purposes of section 13, an employee shall be deemed to have worked in an establishment in any accounting year also on the days on which,- (a) he has b...
15Set on and set off of allocable surplus
(1) Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 11, ...
16Special provisions with respect to certain establishments
17[(1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to ...
17Adjustment of customary or interim bonus against bonus payable under the Act
Where in any accounting year,- (a) an employer has paid any puja bonus or other customary bonus to an employee; or (b) an employer has paid a part of the bonus...
18Deduction of certain amounts from bonus payable under the Act
Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then, it shall be lawful for the employer to d...
19Time-limit for payment of bonus
20[All amounts] payable to an employee by way of bonus under this Act shall be paid in cash by his employer,- (a) where there is a dispute regarding payment of...
20Application of Act to establishments in public sector in certain cases
21[(1)] If in any accounting year an establishment in public sector sells any goods produced or manufactured by it or renders any services, in competition wit...
21Recovery of bonus due from an employer
Where any money is due to an employee by way of bonus from his employer under a settlement or an award or agreement, the employee himself or any other person ...
22Reference of disputes under the Act
Where any dispute arises between an employer and his employees with respect to the bonus payable under this Act or with respect to the application of this Act...
23Presumption about accuracy of balance sheet and profit and loss account of corporations and companies
(1) Where, during the course of proceedings before any arbitrator or Tribunal under the Industrial Disputes Act, 1947 (14 of 1947), or under any corresponding...
24Audited accounts of banking companies not to be questioned
(1) Where any dispute of the nature specified in section 22 between an employer, being a banking company, and its employees has been referred to the said aut...
25Audit of accounts of employers, not being corporations or companies
(1) Where any dispute of the nature specified in section 22 between an employer, not being a corporation or a company, and his employees has been referred to ...
26Maintenance of registers, records, etc.
Every employer shall prepare and maintain such registers, records and other documents in such form and in such manner as may be prescribed. ...
27Inspectors
(1) The appropriate government may, by notification in the Official Gazette appoint such persons as it thinks fit to be Inspectors for the purposes of this Ac...
28Penalty
If any person,- (a) contravenes any of the provisions of this Act or any rule made thereunder, or (b) to whom a direction is given or a requisition is made und...
29Offences by companies
(1) If the person committing an offence under this Act is a company, every person who, at the time the offence was committed was in charge of, and was respons...
30Cognizance of offences
(1) No court shall take cognizance of any offence punishable under this Act, save on complaint made by or under the authority of appropriate government 6[or a...
31Protection of action taken under the Act
No suit, prosecution or other legal proceeding shall lie against the government or any officer of the government for anything which is in good faith done or i...
31ASpecial provision with respect to payment of bonus linked with production or productivity
Notwithstanding anything contained in this Act,- (i) where an agreement or a settlement has been entered into by the employees with their employer before the ...
32Act not to apply to certain classes of employees
Nothing in this Act shall apply to,- (i) 27[employees employed by any insurer carrying on general insurance business and the] employees employed by the Life I...
33Act to apply to certain pending disputes regarding payment of bonus
Omitted by the Payment of Bonus (Amendment) Act, 1976, w.e.f. 25th. September, 1975. ...
34Effect of laws and agreements inconsistent with the Act
Subject to the provisions of section 31A, the provisions of this Act shall have effect notwithstanding anything inconsistent contained in any other law for t...
35Saving
Nothing contained in this Act shall be deemed to affect the provisions of the Coal Mines Provident Fund and Bonus Schemes Act, 1948 (46 of 1948), or of any sc...
36Power of exemption
If the appropriate government, having regard to the financial position and other relevant circumstances of any establishment or class of establishments, is of...
37Power to remove difficulties
Omitted by the Payment of Bonus (Amendment) Act, 1976, w.e.f. 25th. September, 1975. ...
38Power to make rules
(1) The Central Government may make rules for the purpose of carrying into effect the provisions of this Act. (2) In particular, and without prejudice to the g...
39Application of certain laws not barred
Save as otherwise expressly provided, the provisions of this Act shall be in addition to and not in derogation of the Industrial Disputes Act, 1947 (14 of 194...
40Repeal and saving
(1) The Payment of Bonus Ordinance, 1965 (3 of 1965), is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said or...
ScheduleThe First Schedule
[Section 4(a)] Accounting year ending ......... Item No. Particulars Amt. of sub- Items Rs. Amt. of main Items Rs. Remarks *1. Net Profit as shown in the profi...
The Second Schedule
[(See Section 4(b)] Accounting year ending……………. Item No. Particulars Amt. Of sub- Items Rs. Amt. Of main Items Rs. Remarks 1. Net profit as per profit and loss...
The Third Schedule
[Section 6(d)] Item No. Category of employer Further sums to be deducted 1. Company, other than a banking company. (i) The dividends payable on its preferen...
The Fourth Schedule
[Sections 15 and 16] In this Schedule, the total amount of bonus equal to 8.33 per cent of the annual salary or wages payable to all the employees is assumed ...
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