ENTREPRENEURSHIP

Detailed explanation-1: -The Payment of Bonus Bill having been passed by both the Houses of Parliament received the assent of the President on 25th September, 1965. It came on the Statute Book as THE PAYMENT OFBONUS ACT, 1965 (21 of 1965).

Detailed explanation-2: -Minimum bonus to the employees payable in an accounting year to the limit of 8.33% of the salary subject to maximum limit of Rs. 3, 500/-p.a. Bonus payable under the Act is to be paid within 8 months from the close of the accounting year or within one month from the date of which award becomes enforceable.

Detailed explanation-3: -To implement these recommendations the payment of Bonus Ordinance, 1965 was promulgated on May, 1965 which was replaced by Payment of Bonus Act, 1965 assented on September 25, 1965.

Detailed explanation-4: -The objectives of the Bonus Act (Payment of bonus Act) are as follows: To impose a legal responsibility upon the employer of every establishment covered by the Act to pay the bonus to employees. To designate the minimum and maximum percentage of bonus. To prescribe the formula for calculating bonus.