The Payment of Bonus Act, 1965

This Act provides for the payment of bonus to person employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith. This Act applies to every factory and every other establishment in which 20 or more persons are employed on any day during the accounting day. Government of Tamil Nadu have issued notification for the application of this Act to the Establishments Employing less than 20 Employees, but not less than 10 Employees. According to the provisions of this Act, every employee drawing salary or wages not exceeding Rs.10,000/- per month, who has worked for not less than 30 days in an accounting year shall be eligible for bonus. The minimum bonus payable under this Act is 8.33 percent and the maximum is 20 percent.
This Act is being enforced by the Joint Commissioners of Labour, Deputy Commissioners of Labour Assistant Commissioners of Labour and Labour Officer.>