Payment of Bonus Act, 1965
After reading this chapter, you will be able to understand:
- Application of Bonus Act
- Allocable surplus and available surplus
- Eligibility for bonus and calculation of days
- Minimum and maximum bonus
- Set on and set off of allocable surplus
The practice of paying bonus in India appears to have originated during the First World War when certain textile mills granted 10% of the wages as war bonus to their workers in 1917.
In 1950, the Full Bench of the Labour Appellate evolved a formula for the determination of the bonus. A plea was made to raise that formula in 1959. At the second and the third meetings of the Eighteenth Session of the Standing Labour Committee held in New ...