The Payment of Bonus Act is applicable to every establishment or a factory where 20 or more people are employed at any time during one accounting year and once an establishment is covered under this act, the applicability would not cease to operate even if the number of employed people falls below 20 afterwards. The Payment of Bonus Ac event applies to part-time employees.
However, this Act doesn’t apply to non-profit organizations, social welfare institutions, central bank, financial institutions, establishments like LIC (insurer doing a business of insurance, hospitals, university/educational institutes employers employing seamen and dock workers.