Hi Friends,
The payment of Bonus Act, 1965 is applicable to those establishments wherein 20 or more employees were employed on any day of the preceeding accounting year. Does the Contrcators who are engaging less than 20 Contrcat Labour on any day of the preceeding 12 months have also to pay Bonus to their Contract labours as per the Provisions of the payment of Bonus Act?
Please suggest appropriately.
Yogesh Kumar Singh

1st June 2008 From India, Bhilai

Anil Kaushik
Chief Editor,businessmanager
Legal Counsel
Human Resource
+1 Other

Hi,Yes!contactor is under legal obligation to pay bouns to his employees as per provisions of payment of bonus adt. However principal employer is not liable to pay bonus to contract labour if contactor fails topay them.regdsanil kaushikchief editor-BUSINESS MANAGER-HR
1st June 2008 From India, Delhi
Hi Anil, is it (Payment of Bonus Act,1965) applicable to those Contractor who are 3engaging even one Contract labour per day during the wole accounting year for which Bonus is to pay?
Please suggest.
2nd June 2008 From India, Bhilai
Dear, If the no. of labours engaged is less than 20 in the preceeding twelve months then he is not liable to pay bonus Regards, Nilendra
2nd June 2008
See the defenition of Employer & Employee in any Act and you will se the all inclusion there.
With Regards
V.Sounder Rajan

E-mail : ,

3rd June 2008 From India, Bangalore
Bonus is calculated on Basic & DA only. There is two catch in this,
first, only those employee whose Basic+DA is less than 10000are eligible for bonus and
secondly their salary for calculating bonus will be taken as 3500 only i.e. if Basic+DA is 9000, then bonus will be calculaetd at 3500 only and if it is less than 3500, then on actual.
3rd June 2008
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