payment of act

Payment of Bonus Act, 1965

The Payment of Bonus Act gives a yearly reward to the worker in the industries and foundations utilizing at least 20 people. Under the Act, the bonus is summed up by the employee’s compensation and the remuneration of the enterprise.

Workers procuring ₹21000 every month or less (fundamental + DA, barring other particulars) and have finished 30 working days in that year are eligible for the bonus payment.

Compensation covers basic and DA for the bonus payment, and other allowances (e.g., HRA, overtime, etc.) are barred. Bonus must be paid at the rate of 8.33% as minimal and 20% max. It should be paid within 8 months from the date of account closure.

employees can be excluded from bonus payment when warned or excused by fraud, poor conduct, or in terms of irregularity.

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