Checklist for The Payment of Bonus Act, 1965

Sr. No.	Particulars	Details
1	Applicability	The Act applies to:
		a. Every factory (as defined in Factories Act), and
		b. Every other establishment in which 20 or more person are employed on any day during accounting year.
		c. Special provisions with respect to certain establishments are provided.
		d. Once the Act applies, it shall continue to be governed, notwithstanding the number of persons employed falls below 10 or 20 as the case may be.
2	Eligible Employee	1. Employees (other than apprentice) who have worked for not less than 30 days in that Accounting year.
		2.Employees drawing salary/wages exceeding Rs. 10,000 are not employees.
3	Percentage of payment of bonus	1. Subject to provisions: minimum bonus shall be 8.33% of the salary/wages earned by the employees or Rs. 100 whichever is higher.
		2.If allocable surplus, as computed under the Act, exceeds the amount of minimum bonus, then bonus shall be payable at rate subject to a maximum 20% of salary/wages earned during the accounting year.
4	Register	1.Register of payment of bonus and set on and set off of bonus shall be prepared
5	Forms	1. Yearly return in Form D providing details of bonus paid to employees during the year