BONUS ACT

ACT 21 OF 1965

The Payment of Bonus Bill having been passed by both the Houses of Parliament received the assent of the President on 25th September, 1965. It came on the Statute Book as THE PAYMENT OF BONUS ACT, 1965 (21 of 1965).

Eligibility 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 worked in the establishment for not less than thirty working days in that year.

Penalty

If any person:

• 1 Contravenes any of the provisions of this Act or any rule made thereunder, or
• 2 To whom a direction is given or a requisition is made under this Act fails to comply with the direction or requisition,

He shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

Compliance & Record Keeping

Keeping the employer abreast with the amendments, if any, to the Act and advising and guiding the employer in maintaining records in Form C & Form D as required under this Act.