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Payment of Bonus Act, 1965

Section 13: Proportionate reduction in bonus in certain cases

The Payment of Bonus Act, 1965 was repealed and replaced by the Code on Wages, 2019 from 21 November 2025. It still applies to matters and proceedings from before that date, as the repealing law provides.

Where an employee has not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 8.33 per cent. of his salary or wage for the days he has worked in that accounting year, shall be proportionately reduced.]

Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the section 13