22
Payment of Bonus Act, 1965
Learning objectives
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
23.1 INTRODUCTION
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 ...
Get Business Law, 3rd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
