(
(
a) “divorced woman” means a Muslim woman who was married according to Muslim law, and has been divorced by, or has obtained divorce from, her husband in accordance with Muslim law;
b) “iddat period” means, in the case of a divorced woman,—
(i) three menstrual courses after the date of divorce, if she is subject to menstruation,
(ii) three lunar months after her divorce, if she is not subject to menstruation; and
(
iii) if she is enceinte at the time of her divorce, the period between the divorce and the delivery of her child or the termination of her pregnancy, whichever is earlier;
(
c) “Magistrate” means a Magistrate of the First Class exercising jurisdiction under the Code of Criminal Procedure, 1973 (2 of 1974), in the area where the divorced woman resides;
(d) “prescribed” means prescribed by rules made under this Act.
1. Dated 19-5-1986.
2. Words “except the State of Jammu and Kashmir” omitted by the Jammu and Kashmir Reorganisation Act, 2019, w.e.f. 31-10-2019. 1
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PAYMENT OF BONUS ACT, 1965
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Payment of Bonus Act, 1965
[SHALL BE REPEALED BY CODE ON WAGES, 2019, WITH EFFECT FROM A DATE YET TO BE NOTIFIED] [21 OF 1965]*
1[An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of pro ts or on the basis of production or productivity and for matters connected therewith]
BE it enacted by Parliament in the Sixteenth Year of the Republic of India as follows:—
Short title, extent and application.
1. (1) This Act may be called the Payment of Bonus Act, 1965.
(2) It extends to the whole of India 2[***].
(3) Save as otherwise provided in this Act, it shall apply to—
(a) every factory; and
(b) every other establishment in which twenty or more persons are employed on any day during an accounting year:
3[Provided that the appropriate Government may, after giving not less than two months’ notice of its intention so to do, by noti cation in the Of cial Gazette, apply the provisions of this Act with effect from such accounting year as may be speci ed in the noti cation, to any establishment or class of establishments [including an establishment being a factory within the meaning of sub-clause (ii) of clause (m) of section 2 of the Factories Act, 1948 (63 of 1948)], employing such number of persons less than twenty as may be speci ed in the noti cation ; so, however, that the number of persons so speci ed shall in no case be less than ten.]
(4) Save as otherwise provided in this Act, the provisions of this Act shall, in relation to a factory or other establishment to which this Act applies, have effect in respect of the accounting year commencing on any day in the year 1964 and in respect of every subsequent accounting year:
*Dated 25-9-1965.
1. Substituted for “An Act to provide for the payment of bonus to persons employed in certain establishments and for matters connected therewith” by the Payment of Bonus (Amendment) Act, 1976, w.r.e.f. 25-9-1975.
2. Words “except the State of Jammu and Kashmir” omitted by the Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970, w.e.f. 1-9-1971.
3. Inserted by the Payment of Bonus (Amendment) Act, 1976, w.r.e.f. 25-9-1975.
S. 2 PAYMENT OF BONUS ACT, 1965 2
4[Provided that in relation to the State of Jammu and Kashmir, the reference to the accounting year commencing on any day in the year 1964 and every subsequent accounting year shall be construed as reference to the accounting year commencing on any day in the year 1968 and every subsequent accounting year:]
5[Provided further that when the provisions of this Act have been made applicable to any establishment or class of establishments by the issue of a noti cation under the proviso to sub-section (3), the reference to the accounting year commencing on any day in the year 1964 and every subsequent accounting year or, as the case may be, the reference to the accounting year commencing on any day in the year 1968 and every subsequent accounting year, shall, in relation to such establishment or class of establishments, be construed as a reference to the accounting year speci ed in such noti cation and every subsequent accounting year.]
(5) An establishment to which this Act applies 6[* * *] shall continue to be governed by this Act notwithstanding that the number of persons employed therein falls below twenty 5[or, as the case may be, the number speci ed in the noti cation issued under the proviso to sub-section (3)].
De nitions.
2. In this Act, unless the context otherwise requires,—
(1) “accounting year” means—
(i) in relation to a corporation, the year ending on the day on which the books and account of the corporation are to be closed and balanced ;
(ii) in relation to a company, the period in respect of which any profit and loss account of the company laid before it in annual general meeting is made up, whether that period is a year or not;
(iii) In any other case—
(a) the year commencing on the 1st day of April; or
(b) if the accounts of an establishment maintained by the employer thereof are closed and balanced on any day other than the 31st day of March, then, at the option of the employer, the year ending on the day on which its accounts are so closed and balanced:
Provided that an option once exercised by the employer under paragraph (b) of this sub-clause shall not again be exercised except with the previous permission in writing of the prescribed authority and upon such conditions as that authority may think fit;
4. Inserted by the Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970, w.e.f. 1-9-1971.
5. Inserted by the Payment of Bonus (Amendment) Act, 1976, w.r.e.f. 25-9-1975.
6. Words “under clause (b) of sub-section (3)” omitted, ibid.
(2) “agricultural income” shall have the same meaning as in the Income-tax Act;
(
3) “agricultural income-tax law” means any law for the time being in force relating to the levy of tax on agricultural income;
(4) “allocable surplus” means—
(a) in relation to an employer, being a company 7[(other than a banking company)] which has not made the arrangements prescribed under the Income-tax Act for the declaration and payment within India of the dividends payable out of its profits in accordance with the provisions of section 194 of that Act, sixty-seven per cent of the available surplus in an accounting year;
(b) in any other case, sixty per cent of such available surplus;
8[* * *]
(5) “appropriate Government” means—
(i) in relation to an establishment in respect of which the appropriate Government under the Industrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central Government;
(ii) in relation to any other establishment, the Government of the State in which that other establishment is situate;
(
6) “available surplus” means the available surplus computed under section 5;
(7) “award” means an interim or a final determination of any industrial dispute or of any question relating thereto by any Labour Court, Industrial Tribunal, or National Tribunal constituted under the Industrial Disputes Act, 1947 (14 of 1947), or by any other authority constituted under any corresponding law relating to investigation and settlement of industrial disputes in force in a State and includes an arbitration award made under section 10A of that Act or under that law;
(8) “banking company” means a banking company as defined in section 5 of the Banking Companies Act, 1949 (10 of 1949), and includes the State Bank of India, any subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959(38of 1959), 9[any corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), 10[any corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980),] any co-operative Bank as defined in clause (bii) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934)], and any other banking institution which may be notified in this behalf by the Central Government;
7. Inserted by the Payment of Bonus (Second Amendment) Act, 1980, w.r.e.f. 21-8-1980. Earlier these words were omitted by the Payment of Bonus (Amendment) Act, 1976, w.r.e.f. 25-9-1975.
8. Words “and includes any amount treated as such under sub-section (2) of section 34,” omitted by the Payment of Bonus (Amendment) Act, 1976, w.r.e.f. 25-9-1975.
9. Inserted, ibid.
10. Inserted by the Payment of Bonus (Second Amendment) Act, 1980, w.r.e.f. 21-8-1980.
PAYMENT OF BONUS ACT 1965 – BARE ACT WITHOUT COMMENTS | AIBE
AUTHOR : TAXMANN'S EDITORIAL BOARD
PUBLISHER : TAXMANN
DATE OF PUBLICATION : AUGUST 2025
EDITION : 2025 EDITION
ISBN NO : 9789371261951
NO. OF PAGES : 44
BINDING TYPE : PAPERBACK
DESCRIPTION
Payment of Bonus Act 1965 [Bare Act without Comments] by Taxmann for All India Bar Examination (AIBE) is a precise statutory compilation of India's key legislation regulating the payment of bonuses to employees in certain establishments. It outlines the legal framework for bonus computation and distribution based on profits, productivity, or production, along with provisions on compliance, dispute resolution, and enforcement. The 2025 Edition presents the complete, unamended statutory text, updated with all amendments in force, in an AIBE-compliant format free from commentary, annotations, or case law, ensuring accuracy for legal reference and examination use.
The Present Publication is the 2025 Edition, covering the amended and updated text of the Payment of Bonus Act [Act No. 21 of 1965], with the following noteworthy features:
• [Complete & Authentic Text] Full statutory provisions as notified by the Government of India
• [Latest Amendments] Incorporates all legislative updates till 2025
• [Exam-compliant Format] Bare provisions only; aligned with AIBE rules
• [Structured Presentation] Section-wise arrangement for ease of reference
• [Reference Accuracy] Direct reproduction from official gazette notifications
