The Payment of Bonus Act, 1965 aims to regulate the payment of annual bonuses to employees in Indian companies and establishments. The key points of the act are: 1) It requires companies with 20 or more employees to pay annual bonuses based on profits to reward employees and improve productivity. 2) Bonuses must be between 8.33% of wages (minimum of INR 100) and 20% of wages, not exceeding INR 7,000 per month. 3) Eligible employees must have worked at least 30 days in a year. Newly established companies have additional provisions for paying bonuses. 4) The act extends to all of India and covers factories, establishments, and most companies except for certain