HR Glossary
What is Payment of Bonus Act?
India's central legislation enacted in 1965 that mandates payment of an annual bonus to employees in establishments with 20 or more workers, with a minimum bonus of 8.33% and a maximum of 20% of wages or salary.
Why it matters in hiring
Payment of Bonus Act comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.
Related terms starting with P
- Pay Transparency
- Pay Transparency Directive
- PAYE - Pay As You Earn
- PAYG - Pay As You Go (Australia)
- Payment of Gratuity Act
- Payment of Wages Act
- Payroll
- Payroll Compliance
Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.
