The Act defines an employee who is enclosed by it like one earning Rs 2,500 p.m. (w.e.f. 1.4.93) fundamental plus dearness allowance and indicate the formula for computing the allocable surplus by which bonus is to be distributed. The least bonus to be paid has been raised from 4 % to 8.33% (w.e.f. 25.9.75) and is required to be linked to increased productivity in current times. Throughout collective bargaining, the workers, by their representative union, may negotiate for more than what the Act give and get the similar ratified by the government, if essential . In the absence of such a process, the Act makes it compulsory to pay bonus to employees (who have worked in the unit for not less than 30 working days in a year) following a prearranged formula for calculating the available surplus. Normally the available surplus is the gross profits for that year after subtracting depreciation,  direct tax , growth rebate/investment allowance/development allowance and other sums referred to in Sec. 6 The Act applies to all factory or establishment in which 20 or more persons are working in an accounting year. Today the position is like that even if there is a loss, a minimum bonus have to be paid treating the similar as deficit to be carried forward and set off against income in subsequent years (Sec. 15). The Act is proposed to be changed as the amount of bonus, the method for calculating surplus, & the set off provisions have all been under serious attack from many quarters.