Bonus Act Amendments:
The amendments have been made with the intention to bring more employees under the eligibility of the Bonus Act. While this will certainly be cheered by employees, this also creates a financial liability for employers.
1. Wage limit increased from Rs. 10,000 to Rs. 21,000.
2. Bonus limit increased to 8.33% - 20% of Rs. 7000 (or minimum wages, whichever is higher).
a. Bonus is payable for employees whose wages are less than Rs. 21,000 per month w.e.f. 21/07/2014.
b. Employees whose salary is more than the minimum wages are eligible for a bonus as if their salary is Rs. 7000 per month.
c. Employees whose salary is the minimum wages under MW Act and is more than Rs. 7000 per month are eligible for more bonus.
From India, Pune
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6The amendments have been made with the intention to bring more employees under the eligibility of the Bonus Act. While this will certainly be cheered by employees, this also creates a financial liability for employers.
1. Wage limit increased from Rs. 10,000 to Rs. 21,000.
2. Bonus limit increased to 8.33% - 20% of Rs. 7000 (or minimum wages, whichever is higher).
a. Bonus is payable for employees whose wages are less than Rs. 21,000 per month w.e.f. 21/07/2014.
b. Employees whose salary is more than the minimum wages are eligible for a bonus as if their salary is Rs. 7000 per month.
c. Employees whose salary is the minimum wages under MW Act and is more than Rs. 7000 per month are eligible for more bonus.
From India, Pune
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Dear friend,
Though it is irrefutably correct that the recent amendments carried out to the Payment of Bonus Act, 1965 have increased the financial burden of employers in the wake of a spate of amendments to other labor legislations like the ESI Act, 1948, EPF Act, 1952, the PW Act, 1936, etc., together with the periodical addition of more and more employments under the MW Act, 1948, it cannot be viewed so isolatedly. One has to think in terms of the shrinkage in the real wages of the working class due to the constant rise in prices. In the words of Cohen, "Law is a science of social adjustment; its main object being to establish socio-economic justice and remove the existing imbalances in the socio-economic structure."
From India, Salem
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Though it is irrefutably correct that the recent amendments carried out to the Payment of Bonus Act, 1965 have increased the financial burden of employers in the wake of a spate of amendments to other labor legislations like the ESI Act, 1948, EPF Act, 1952, the PW Act, 1936, etc., together with the periodical addition of more and more employments under the MW Act, 1948, it cannot be viewed so isolatedly. One has to think in terms of the shrinkage in the real wages of the working class due to the constant rise in prices. In the words of Cohen, "Law is a science of social adjustment; its main object being to establish socio-economic justice and remove the existing imbalances in the socio-economic structure."
From India, Salem
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We fully agree that law is a social adjustment. The fact that there is a shrinkage of the real wages of the working class. However, due to new amendments, there will be a discrepancy in the amount of bonus for different categories. Unskilled workers who have worked for many years will be receiving less bonus compared to worker operators who are semiskilled/skilled and have fewer years of service. It is practically very difficult to digest or convince old and loyal workers.
From India, Pune
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From India, Pune
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THE PAYMENT OF BONUS ACT(with amendments & comments) 1965.docx
Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf