Payment Of Bonus Act (1965)
The Payment of Bonus Act, 1965 was introduced to ensure that eligible employees receive a fair share of an organisation’s profits through annual bonus payments. The Act defines the eligibility conditions, minimum and maximum bonus limits, calculation methods, payment timelines, and employer responsibilities. Its main purpose is to promote social justice, reduce economic inequality, and recognise the contribution of employees to business growth. Employers are required to maintain proper wage, attendance, and bonus records and make payments within the prescribed period. Although many companies distribute bonuses during Diwali, the term “Diwali Bonus Act” is only commonly used and is not the official name of the legislation. Proper bonus compliance helps organisations avoid disputes, penalties, and delayed payments while building trust and transparency between employers and employees.
Payment Of Bonus Act (1965)
- Providing day to day consultancy on matters pertaining to payment of bonus
- Assistance in calculation of accurate amount of bonus
- Assistance in treatment of available surplus / allocable surplus like set-on, set-off, carry forward
- Preparation & Maintenance of various Registers like Register of Allocable Surplus, Register of set on & set off of Allocable Surplus, Register of Bonus etc. as provided under the act
- Preparation & submission of Annual return as prescribed under the act
- Replying / Satisfying Show Cause Notices issued by Inspector
- Representing establishments before inspector
- Assistance to establishments at the time of inspection and search of any premises by inspector
- Representing establishments at the Inquiries conducted by the Inspector