The Payment of Bonus Act, 1965 and rules.


It extends to the whole of India. This act applied to every factory and every other establishment in which 20 or more persons are employed on any day during an accounting year. Once the bonus act becomes applicable to an establishment which included a shop also, it will continue to apply irrespectvice of the fact that the number of employees working therein falls below 20 or the number specified in the nomination applying the act.

Rate Of Bonus

Minimum= 8.33% of salary
Maximum= 20% of salary


(i) Salary= basic pay + DA
(ii) Salary should not exceed 21,000/- Section 2(13)
(iii) Should have worked at lest 30 days in the relevant year.
(iv) Bonus to be paid Rs. 7,000/- or minimum wages for the schedule employment whichever is higher.
(v) No Bonus for years of loss during the first 5 years.

Registers to be maintained

A register showing the computation of the allocable surplus.

A register showing the set-on and set off of the allocable surplus.

A register showing the details of the amount of bonus due to each of the employee.

Form A, B, C

Services offered

Providing day to day consultancy service pertaining to payment of bonus.

Preparation and maintenance of above said registers.

Preparation and submission of returns in Form D to the inspector so as to reach him within 30 days after the expiry of the time limit specified in section 19 for payment of bonus.

Prepare calculation of bonus.

Replying show cause notice issued by the inspector.

Representing the establishment before the inspectors and appellate authorities.


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