1. Short title, extent and application - (1) This Act may be called the Payment of Bonus Act,1965

(2) It extends to the whole of India [Note: The words "except the State of Jammu and Kashmir" omitted by Act 51 of 1970, Sec.2 and Schedule (w.e.f. 1^st September,1971).

(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 :

[(Note: Ins. by Act 23 of 1976, Sec.3 (w.e.f. 25^th September, 1975) Provided that the appropriate Government may, after giving not less than two months' notice of its intention so to do, by notification in the official Gazette, apply the provisions of this Act with effect from such accounting year as may be specified in the notification, to any establishment or class establishments [including an establishment being a factory within the meaning of sub-clause (ii) of Cl. (m) of Sec.2 of the Factories Act, 1948 (63 of 1948)] employing such number of persons less than twenty as may be specified in the notification ; so however, that number of persons so specified 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 :

[(Note: Added by Act 51 of 1970, Sec.2 and Schedule (w.e.f. 1^st September, 1971) 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 :]

[(Note: Ins. by Act 23 of 1976, Sec.3 (w.e.f. 25^th September, 1975) 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 notification 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 specified in such notification and every subsequent accounting year.]

(5) An establishment to which this Act applies [Note: The words, brackets, letter and figure "under Cl. (b) of sub-section (3)" omitted by Act 23 of 1976, Sec.8 (w.e.f. 25^th September, 1975)] shall continue to be governed by this Act notwithstanding that the number of persons employed therein falls below twenty [(Note: Ins. by Act 23 of 1976, Sec-3, (w.e.f. 25^th September, 1975) or, as the case may be, the number specified in the notification issued under the proviso to sub-section (3)].

Section 1 and 2 of Payment of Bonus (Amendment) Act No.43 of 1977 provides as under :

1. Shot title and commencement - (1) This Act may be called the Payment of Bonus (Amendment) Act, 1977.

(2) It shall come into force on the third day of September, 1977.

2. Act 21 of 1965 to have modified effect for a particular period - The Payment of Bonus Act, 1965 (hereinafter referred to as the principal Act) shall, -

Have effect in respect of the accounting year commencing on any day in the year 1976 [and in respect of the accounting year commencing on any day in the year 1977], as if the amendments specified in Sections 3 to 19 has been made in that Act.

Explanation - In this section, the expressions "banking company" and "accounting year" shall have the meanings respectively assigned to them in clauses (8) and (1) of Section 2 of the principal Act".