Payment Bonus Act 1965 And 1975 ?

Srinivasa HR Executive

Dear all
Can you explain me about Payment bonus act 1965 and 1975 ?
Is it mandatory to follow in Manufacturing Industry ?
How we are calculate this bonus payment act ?
When we will provide this bonus for an employees ?
Regards
Srinivas

saiconsult

it is applicable to a factory covered by the Factories Act 1948. Even though the wages of an employee exceeds Rs 3500/- per month subject to the maximumof Rs10000/-p.m, the wages( basic + DA) shall be taken as only Rs.3500/-p.m for the purpose of calculation of bonus.The bonus shall be provided within 8 months from the date of clsoing of an accounting year.
B.Saikumar
Mumbai

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