The Payment of Bonus Act, 1965 Quiz

What is the object of the Payment of Bonus Act, 1965?

• To maintain peace and harmony between labour and capital

• To increase profits for employers

• To reduce the number of employees

• To eliminate bonuses for employees

To which establishments does the Payment of Bonus Act, 1965 apply?

• Only to factories with more than 50 employees

• All factories and establishments employing 20 or more persons

• Only to government institutions

• Only to private companies

What is the definition of an employee under the Payment of Bonus Act, 1965?

• Any person employed on a salary or wage not exceeding Rs. 10,000/- per month

• Any person working in a government job

• Any person who is an apprentice

• Any person working part-time

What is the first step towards calculating the amount of bonus?

• Determination of gross profit

• Calculating available surplus

• Distributing the bonus

• Setting off previous losses

What percentage of available surplus is allocable for a company?

• 50%

• 60%

• 67%

• 70%

What is the time limit for payment of bonus according to the Act?

• Within one month from the close of the accounting year

• Within eight months from the close of the accounting year

• Within one year from the close of the accounting year

• Within two years from the close of the accounting year

Who can make an application for recovery of bonus due to an employee?

• Only the employee himself

• The employer

• Someone on behalf of the employee or the employee's heir

• The government

What happens if an employee is found guilty of misconduct causing financial loss to the company?

• The employee will receive a bonus

• The employer can deduct the loss amount from the statutory bonus

• The employee will be promoted

• The employer must pay the bonus in full

What is the maximum bonus fixed at for eligible employees?

• 10%

• 15%

• 20%

• 25%

What is the exemption period for newly set up establishments under the Act?

• Three years

• Five years

• Six years

• Ten years