The Payment Of Bonus Act, 1965

This practitioner-focused handbook on the Payment of Bonus Act, 1965 demystifies statutory bonus law and equips employers, payroll teams and advisers with immediately actionable tools. The book begins with scope and definitions—employer/employee coverage, accounting periods, qualifying period and qualifying wages—then explains the statutory formulae for minimum and maximum bonus, salary ceilings, and rules for set-off and recovery. Chapters provide step-by-step worked examples across typical scenarios (partial-year service, variable wages, arrears, commission schemes), and explain disqualification grounds (misconduct, stoppage of work), application of allocable surplus, and methods for distributing bonus across categories of employees. Compliance sections include timelines for payment, interest and penalty exposure, audit documentation and tribunal dispute procedures. Practical appendices supply an editable bonus-calculation spreadsheet, sample employee notices, model board resolutions, ledger entries and a one-page bonus compliance checklist. Whether preparing year-end payroll, responding to statutory audits or litigating bonus disputes, this guide reduces errors, saves drafting time and makes statutory bonus management auditable and defensible.