c






Submitted by-
by-Sonal yadav
 m  
M c e practice of paying bonus in India
appears to ave originated during First
World War w en certain textile mills
granted 10% of wages as war bonus to
t eir workers in 1917included.
M In 1950, t e Full Benc of t e Labour
Appellate evolved a formula for
determination of bonus. A plea was made
to raise t at formula in 1959.
M At t e second and t ird meetings of t e
Eig teent Session of Standing Labour
Committee (G. O.I.) eld in New Del i in
Marc
April 1960
M A cripartite Commission was set up by t e
Government of India to consider in a
compre ensive manner, t e question of
payment of bonus based on profits to employees
employed in establis ments and to make
recommendations to t e Government.
M 1965 was promulgated on 29t May,
1965. co replace t e said Ordinance t e
Payment of Bonus Bill was introduced in
t e Parliament.
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M A cripartite Commission was set by t e
Government of India by t eir resolution
No.WB--20(9)
61, dated 6t December,
No.WB
1961 to consider in a compre ensive
manner, t e question of payment of bonus
based on profits to employees employed
in establis ments and to make
recommendations to t e Government .
M c e Commissionƞs Report containing t eir
recommendations was received by t e
Government on 24t January, 1964.
M Commission as accepted by t e
Government, t e Payment of Bonus
Ordinance, 1965, was promulgated on
29t May, 1965. c e object of t e Bill is
to replace t e said Ordinance


 

M c e Payment of Bonus Bill aving been

passed by bot t e Houses of Parliament
received t e assent of t e President on
25t September, 1965. It came on t e
Statute Book as cHE PAYMENc OFBONUS
ACc, 1965 (21 of 1965).
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I

2

M 1. c e Insurance (Amendment) Act, 1968

(62 of 1968).
M 2. c e Payment of Bonus (Amendment)
Act, 1969 (8 of 1969).
M 3. c e Central Labour Laws (Extension of
Jammu And Kas mir) Act, 1970
(51 of 1970).
M 4. c e Payment of Bonus (Amendment) Act, 1972 (68
of 1972).
M 5. c e Payment of Bonus (Amendment) Act, 1973 (39
of 1973).
M 6. c e Payment of Bonus (Second Amendment) Act,
1973 (55 of 1973).
M 7. c e Payment of Bonus (Amendment) Act, 1974(42
of 1974).
M 8 c e Payment of Bonus (Amendment) Act, 1976(23
of 1976).
M 9 c e Payment of Bonus (Amendment) Act, 1977 (43
of 1977
M 10. c e Payment of Bonus (Second Amendment) Act,
1980 (66 of 1980).
M 11. c e National Bank for Agriculture and Rural
Development Act, 1981 (61 of 1981).
M 12. c e Payment of Bonus (Amendment) Act, 1985 (30
of 1985).
M 13. c e Payment of Bonus (Second Amendment) Act,
1985 (67of 1985).
M 14. c e National Housing Bank Act, 1987 (53 of 1987).
M 15. c e Small Industries Development Bank of India Act,
1989 (39 of 1989).
M 16 c e Payment of Bonus (Amendment) Act, 1995 (34
of 1995).
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|
M 1]An Act to provide for t e payment of
1]An
bonus to persons employed in certain
establis ments on t e basis of profits or
on t e basis of production or productivity
and for matters connected t erewit .]
M BE it enacted by Parliament in t e
Sixteent Year of t e Republic of India as
follows:--
follows:
M .-(1) c is Act may be called t e Payment of Bonus Act,
1965.
M (2) It extends to t e w ole of India.
M (3). Save as ot erwise provided in t is Act, it s all apply
to ƛ
M every factory; and
M every ot er establis ment in w ic twenty or more
persons are employed on any day during an accounting
year.
M
1] c e words ơexcept t e State of Jammu and Kas mirơ
omitted by Act 51 of 1970, sec. 2 and sc . (w.e.f 1-
1-9-
1971).
M (4). Save as ot erwise provided in t is
Act, t e provisions of t is Act s all, in
relation to a factory or ot er
establis ment to w ic t is Act applies,
ave effect in respect of t e accounting
year commencing on any day in t e year
1964 and in respect of every subsequent
accounting year:
M 5) An establis ment to w ic t is Act
applies 1 ] s all continue to be
governed by t is Act notwit standing t at
t e number of person employed t erein
falls below twenty 2or, as t e case may
be, t e number specified in t e
notification issued under t e proviso to
sub--section (3)].
sub
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M Provided t at w ere for any accounting year a
separate balance-
balance-s eet and profit and loss
account are prepared and maintained in respect
of any suc department or undertaking or
branc , t en suc department or undertaking or
branc s all be treated as a separate
establis ment for t e purpose of computation of
bonus, under t is Act for t at year, unless suc
department or undertaking or branc was,
immediately before t e commencement of t at
accounting year treated as part of t e
establis ment for t e purpose of computation of
bonus.
 

 
 å


 
 å
M AEvery employee s all be entitled to be
paid by is employer in an accounting
year, bonus, in accordance wit t e
provisions of t is Act, provided e as
worked in t e establis ment for not less
t an t irty working days in t at year.
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M an employee s all be disqualified from
receiving bonus under t is Act, if e is
dismissed from service for --
M (a) fraud; or
M (b)riotous
(b) riotous or violent be aviour w ile on
t e premises of t e establis ment; or
M (c) t eft, misappropriation or sabotage of
any property of t e establis ment
 |  å
|  å
M ASubject to t e ot er provisions of t is Act,
every employer s all be bound to pay to every
employee in respect of t e accounting year
commencing on any day in t e year 1979 and in
respect of every subsequent accounting year, a
minimum bonus w ic s all be 8.33 per cent of
t e salary or wage earned by t e employee
during t e accounting year or one undred
rupees, w ic ever is ig er, w et er or not t e
employer as any allocable surplus in t e
accounting year
 | |
M 1) W ere in respect of any accounting year
referred to in section 10, t e allocable surplus
exceeds t e amount of minimum bonus payable
to t e employees under t at section, t e
employer s all, in lieu of suc minimum bonus,
be bound to pay to every employee in respect of
t at accounting; year bonus w ic s all be an
amount in proportion to t e salary or wage
earned by t e employee during t e accounting
year subject to a maximum of twenty per cent,
of suc salary or wage.
M (2) In computing t e allocable surplus
under t is section, t e amount set on or
t e amount set off under t e provisions of
section 15 s all be taken into account in
accordance wit t e provisions of t at
section.]