My company in Gorakhpur has not paid the statutory annual bonus to workers; what are the obligations under the Payment of Bonus Act?
MA Asked by Madhuri Dixit from India
Quick Answer
Under the Payment of Bonus Act, 1965, every establishment employing twenty or more persons and falling within the scope of the Act must pay a minimum bonus of 8.33 percent of the annual wage or one hundred rupees, whichever is higher, to each eligible employee.
Detailed Legal Analysis
Under the Payment of Bonus Act, 1965, every establishment employing twenty or more persons and falling within the scope of the Act must pay a minimum bonus of 8.33 percent of the annual wage or one hundred rupees, whichever is higher, to each eligible employee. The maximum bonus is twenty percent, subject to allocable surplus and the calculation of the bonus.
Employees earning up to twenty-one thousand rupees per month are eligible, with the calculation done on seven thousand rupees or the minimum wage, whichever is higher. The bonus must be paid within eight months of the close of the accounting year, and a return must be filed in Form D.
The Allahabad High Court may be approached for enforcement of bonus claims. The Uttar Pradesh Rent Control Act 1972 on bonus may have additional rules.
Disputes are referred to the Labour Court under Section 22, and non-payment attracts imprisonment up to six months and fine.
Legal Provisions Referenced
Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.