Act Number: 21

Act Name: The Payment of Bonus Act, 1965

Year: 1965

Enactment Date: 1965-09-25

Long Title: An Act to provide for the payment of bonus to persons employed in certain establishments and for matters connected therewith.

Ministry: Ministry of Labour and Employment

Department:

Section 32: Act not to apply to certain classes of employees.
    Nothing in this Act shall apply to--
         (i) 1 [employees employed by any insurer carrying on general insurance business and the] employees employed by the Life Insurance Corporation of India;
         (ii) seamen as defined in clause (42) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958);
         (iii) employees registered or listed under any scheme made under the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948), and employed by registered or listed employers;
         (iv) employees employed by an establishment engaged in any industry carried on by or under the authority of any department of the Central Government or a State Government or a local authority;
         (v) employees employed by--
             (a) the Indian Red Cross Society or any other institution of a like nature (including its branches);
             (b) universities and other educational institutions;
             (c) institutions (including hospitals, chambers of commerce and social welfare institutions) established not for purposes of profit;
         2 *                             *                             *                             *                             *;
         *                             *                             *                             *                             *;
         (viii) employees employed by the Reserve Bank of India;
         (ix) employees employed by--
             (a) the Industrial Finance Corporation of India;
             (b) any Financial Corporation established under section 3, or any Joint Financial Corporation established under section 3A, of the State Financial Corporations Act, 1951 (63 of 1951);
             (c) the Deposit Insurance Corporation;
             4 [(d) the National Bank for Agriculture and Rural Development;]
             (e) the Unit Trust of India;
             (f) the Industrial Development Bank of India;
             5 [(fa) the Small Industries Development Bank of India established under section 3 of the Small Industries Development Bank of India Act, 1989 (39 of 1989);]
             6 [(ff) the National Housing Bank;]
             (g) any other financial institution 7 [(other than a banking company)], being an establishment in public sector, which the Central Government may, by notification in the Official Gazette, specify, having regard to--
                 (i) its capital structure;
                 (ii) its objectives and the nature of its activities;
                 (iii) the nature and extent of financial assistance or any concession given to it by the Government; and
                 (iv) any other relevant factor;
         8 *                             *                             *                             *                             *;
         (xi) employees employed by inland water transport establishments operating on routes passing through any other country.
Notes:
1. The words in brackets shall stand omitted (date to be notified) by Act 62 of 1968, s. 41.
2. Clause (vi) omitted by Act 45 of 2007, s. 4 (w.e.f. 1-4-2006).
3. Clause (vii) omitted by Act 66 of 1980, s. 18 (w.e.f. 21-7-1980).
4. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for sub-clause (d) (w.e.f. 2-7-1982).
5. Ins. by Act 39 of 1989, s. 53 and the Second Schedule (w.e.f. 7-3-1990).
6. Ins. by Act 53 of 1987, s. 56 and the Second Schedule (w.e.f. 9-7-1988).
7. Ins. by Act 66 of 1980, s. 18 (w.e.f. 21-8-1980).
8. Clause (x) omitted by Act 23 of 1976, s. 20 (w.e.f. 25-9-1975).
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