The PAYMENT OF BONUS ACT-1965

Salient features :
It applies to all factories /establishment, employing 20 or more persons on any day during an accounting year. It includes departments ,undertaking & branches. Eligibility : Employees drawing salary of Rs.3500/- per month . All employees ( Skilled,Unskilled,Clerk,Supervisors) Criteria: Salary( Wages + DA) 30days minimum worked. Limitations : 8.33% of salary , Not more than 20%.
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The PAYMENT OF BONUS ACT-1965

Salient features :
It is paid out of gross profit, and available , allocable surplus i.e. 67% of available surplus. Disqualification for Bonus: Theft Fraud, Violent Behavior Sabotage Disbursement of Bonus : It has to be paid within eight months of the closing of the accounting year. Act does not apply to : Hospitals, NGOs RBI Govt.Institutes LIC UTI Universities Chamber of Commerce..

The PAYMENT OF BONUS ACT-1965

Salient features :
It applies to all factories /establishment, employing 20 or more persons on any day during an accounting year. It includes departments ,undertaking & branches. Eligibility : Employees drawing salary of Rs.3500/- per month . All employees ( Skilled,Unskilled,Clerk,Supervisors) Criteria: Salary( Wages + DA) 30days minimum worked. Limitations : 8.33% of salary , Not more than 20%. 4

The PAYMENT OF BONUS ACT-1965

Production or Performance Liked Bonus:
It is linked with production target of the company. In some companies it linked and named as performance bonus. Exgratia : It is given to the employee in Management category @ the rate of 10% of Basic Salary( Variable Pay).

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