:: Bonus ::

The Payment of Bonus Act, 1965

Applicability :
Applicable to factory and establishment where 20 or more persons are employed, as per Govt. of Maharashtra Notification after giving 2 months notice. Factory with aid of power – 10 or more but less than 20 workers.Estt. 10 or more but less than 20 persons.

Non Applicability :
New establishments exempted for 5 years – but if profit is made, then Act becomes applicable for that year. Set on or set off to be made in manner specified under Sec.16(1-B) (1-C) in Fourth Schedule.

Eligibility :
Employee whose wages upto Rs 10000/- pm Apprentice excluded.
Minimum 8.33% and maximum 20% of salary.Calculation based on Rs 4500.00 Entitlement min. 30 days of work.
Labour Department is empowered to visit establishments for inspection and verification of records so as to ascertain whether the establishments are following the provisions of the Act both in letter and spirit.

Penalty :
Liable for imprisonment upto 6 months or fine upto Rs 1000.00 or both.

Maintenance of Registers.
Employer to maintain registers etc.

• Register of allocable surplus in Form A Rule 4(a)
• Register of set on and set off allocable surplus in Form B Rule 4 ( b )
• Register of details of Bonus and deductions u/ss 17 & 18 in Form C
• Annual Return – Bonus paid to employees for the accountingyear Form D