Objectives of The Payment of Bonus Act,1965


The Payment of Bonus Act, 1965 was enacted to provide for the payment of bonuses to persons employed in certain establishments on the basis of profits or productivity and for the matters connected therewith.

Following are the objectives of The Payment of Bonus Act :

  • To improve statutory liability to pay bonus reward for good work in case of profits or losses.
  • To prescribe a formula for calculating bonus
  • To prescribe minimum & maximum percentage bonus
  • To provide of set-off/set on the mechanism
  • To provide a redressal mechanism


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