The payment of Bonus Act is applicable to all the Factories / Establishments where 10 and  above employees have been appointed in any factory or establishment and the establishments which are registered under The Factories Act 1948.

                 2. ACCOUNTING YEAR FOR PAYMENT OF BONUS

                 The accounting year for the payment of Bonus is 1st day of April to 31st day of March in every year.

                 3. 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 establishment for not less than 30 days.

                 4. DISQUALIFICATION FOR BONUS

                 Not withstanding everything contained in this Act, an employee shall be disqualified from receiving Bonus under this Act, if he is dismissed from services for :

                      Fraud
                      Riotous of violent behavior while on he is in the premises of the establishment.
                      Theft, misappropriation or sabotage of any property of the establishment.

                 5. PAYMENT 0F MINIMUM AND MAXIMUM BONUS

                      [A] MINIMUM BONUS

                      Every employer shall be bound to pay to every employee in respect of the accounting year a minimum Bonus which shall be 8.33 % of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher.

                      [B] MAXIMUM BONUS

                      Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees, under the section, the employer shall, in lack of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wages earned by the employee during the accounting year subject to a maximum of 20% of such salary or wage.

                      In computing allocable surplus under this section, the amount set on or the amount set off under the provisions of Section-15 shall be taken into account in accordance with the provisions of that section.

                 6. TIME LIMIT FOR PAYMENT OF BONUS

                 The bonus payable to an employee by way of Bonus under this Act shall be paid by his employer.

                 [a] Where there is a dispute regarding payment of Bonus pending before any authority under Section - 22 , within a month from the date on which the award becomes enforceable or the settlement comes in to operation, in respect of such dispute.

                 [b] In any other case, within a period of eight months from the closure of the
                  accounting  year.

                 7. HOLIDAY PERIOD FOR PAYMENT OF BONUS

                 The employer whom this Act, applies, need not pay any Bonus for first five accounting year in which the Employer sells the goods produced or manufactured by him or senders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of the Act.

                 8. ANNUAL RETURN

                 Every employer shall send a return in Form No. - D to the Inspector within 30 days after the expiry of the time limit specified in Section - 19 for payment of Bonus.

                 9. REGISITERS

                 The employer whom this Act is applies shall maintain the following Registers.

                 [1] Form No. - A register, which shows the computation of the allocable surplus.

                 [2] Form No. - B register, which shows the section and set off of allocable surplus.

                 [3] Form No. - C which shows the Bonus paid to employees for the respective accounting year.