As per the payment of Bonus at 1965, 1st five years, Bonus is paid based on profit earned by the company during the financial year. Post 5 year i.e financial years of every organization having more than 10 employees required to pay the minimum bonus of 8.33% was assured irrespective of profit earned or not. If the profitability of the organization is substantially high & more than allocable surpluses in that case organisation have to pay maximum bonus is fixed at 20% and the balance is carried forward as “set-on” to cater the emergency for next years. As per the Bonus act amendment 2015, the bonus increase was declared retrospectively. Once the bonus is paid based on profit, after negotiation with employee’s representative, making it retrospective will make the additional burden on the employer. Therefore, the same is not fair and stay on retrospective effect is granted by Karnataka, Madras and few other High Courts. In addition, the bonus calculation is linked to Minimum wage. Since the minimum wage differs from state-to-state; within the state zone-to-zone and industry-to-industry, bonus payment based on minimum wage will not be uniform within the state, region, and industry. Therefore, linking of minimum wage act with bonus act will lead to disputes in the industry