Amendment To Payment Of Bonus Act 2015 : Ceiling From 10,000 Rs To 21,000 /- Released In Gazette - CiteHR
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Dear BP In the 1sr scenario, Bonus will be calculated on 7000/- & in the 2nd scenario, it will remain on 8903/-.
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It is my understanding that according to the amendment, Maximum earned wages on which bonus is payable is Rs.7,000/- or Minimum wages, whichever is higher. Since bonus is paid on the earned wages, if earned wages is less than the Rs.7,000 the bonus is payable only on the earned wages.
Below are a few examples.
Scenario 1:
Minimum wages: Rs.5348
Earned wages: Rs.5348
Then bonus will be calculated on Rs.5348
Scenario 2:
Minimum wages: Rs.5348
Earned wages: Rs.6800
Then bonus will be calculated on Rs.6800
Scenario 3:
Minimum wages: Rs.5348
Earned wages: Rs.7200
Then bonus will be calculated on Rs.7000
Scenario 4:
Minimum wages: Rs.7500
Earned wages: Rs.7500
Then bonus will be calculated on Rs.7500
Scenario 5:
Minimum wages: Rs.7500
Earned wages: Rs.12000
Then bonus will be calculated on Rs.7500
In case you feel this is wrong, please let me know why.
Thanks.
In the scenario 1 and 2 according to the act we have to calculate the earned wages or the ceiling amount of Rs.7,000/- ‘‘seven thousand rupees or the minimum wage for the
scheduled employment, as fixed by the appropriate Government, whichever is higher"
Reply pls
Regards
Shiva - 9241729276
संशोधित बोनस भुगतान अधिनियम २०१५ के अंतर्गत -

०१. यह अधिनियम संशोधित बोनस भुगतान अधिनियम २०१५ कहा जायेगा !

०२. यह ०१ अप्रैल २०१४ से प्रभावी होगा !

०३. बोनस भुगतान अधिनियम १९६५ के अनुच्छेद ०२ के परिछेद १३ में जहाँ पर रुपये १०,०००.०० है रुपये २१,०००.०० समझे जाएं !

०४. मुख्य अधिनियम के अनुच्छेद १२ में-

(क) शब्द ३५०० जहाँ - जहाँ पर है वहां वहां पर शब्द ७००० या उचित सरकार द्वारा अनुसूचित नियोजन का जो न्यूनतम वेतन है , जो भी अधिक हो समझा जायेगा !

(ख) अनुसूचित नियोजन का आशय न्यूनतम वेतन अधिनियम १९४८ के अनुच्छेद २ के परिच्छेद (g) से है !

अतः जहाँ तक मैं समझता हूँ तो किसी भी कर्मचारी को बोनस का भुगतान न्यूनतम ७०००.०० की दर से किया जायेगा और यदि कोई कर्मचारी न्यूनतम वेतन से जयदा वेतन पा रहा है तो उसको उसके नियोजन में लागू होने वाले न्यूनतम वेतन की दर से बोनस का भुगतान किया जायेगा ! ऐसे में कर्मचारी का वर्गीकरण देखना होगा की कर्मचारी किस वर्ग में आता है अर्थात अकुशल, अर्धकुशल या कुशल !

जो भी कर्मचारी जिनका वेतन न्यूनतम वेतन के अंतरगत किया जाता है उनका तो बोनस भुगतान उनको दिए जा रहे न्यूनतम वेतन की दर या रुपये ७००० जो भी ज्यादा होगा की दर से भुगतान किया जायेगा ! परन्तु जो कर्मचारी न्यूनतम वेतन की दर से ज्यादा वेतन पा रहे हैं तो उनको भी उनके कार्य की श्रेणी के हिसाब से लागू होने वाले न्यूनतम वेतन की दर से बोनस का भुगतान किया जायेगा !

समस्त उच्च वरिष्ठ लोगों से उनकी राय वांछित है !
Dear Mr. Shiva,
It is my understanding that Bonus is payable on earned wages. The higher of Rs.7000 or minimum wages is just the maximum earned wages on which bonus is payable, that is NOT the minimum amount on which bonus is payable. Hence if earned wages is less than Rs.7,000 the bonus is payable only on the earned wages.
To put it in the form of a fomula in Excel, here is how I would represent this:
=MIN(EarnedWagesForTheMonth, MAX(MinimumWages,7000))
I do not find any sense in the amendment. First, the concept of Rs 7000 or minimum wages whichever is HIGHER, is wrong. To take an example, if the earned wage is Rs 7500 and the minimum wages fixed is Rs 8000, then we have to calculate the bonus on Rs 8000 as we are bound to take minimum wages for calculation of bonus. If, on the other hand, the earned wage is Rs 6800 and the minimum wages is Rs 6500, then we will have to calculate the bonus on Rs 7000, whereas the actual earned wages is only 6800. This is because the bonus is to be calculated on 7000 or minimum wages whichever is higher and in this case 7000 is higher than the minimum wages and hence we take it as base for calculation of bonus. But how can we pay bonus at the rate of 7000 when we are paying only less than that (ie, Rs 6800) or when we are bound to pay only less than that, ie, Rs 6500, the minimum wages?

Now the amendment suggests a retrospective effect to the new system. Needless to say that a Bonus decision is taken after a lengthy processes involving trade unions and spending a lot of time in negotiations. It is horrible to reopen everything and re do it. Now let us analyse the apprehension of Advocatemukundh, that if he has been paying at the rate of 20% on 3500, whether he would have to retain the percentage of 20% and based on it pay bonus at 20% of 7000 or can have a percentage lesser than 20%. This should be addresses now because rate percentage of bonus is decided after considering allocable surplus and it will be different at different amounts allocated for payment of bonus. When a smaller amount is allocated for payment of bonus, the remaining amount of profit will be readily available for distribution as bonus and the same will be repeated over years. But when it is calculated on 7000, more amounts would be required for payment of bonus and this would certainly reduce the profits available and the rate of bonus for the coming years.

That means, the entire process will have to be reopened and the rate of bonus based on 7000 or minimum wages whichever is higher will have to be decided considering the allocable and available surpluses. In such cases, where the trade unions were involved, I do not think that this would be an easy task. Therefore, I feel that the amendment lacks sanctity. It is good that more people are brought under the bonus cover and it is also good that the amount of bonus would also be good. But the inclusion of “whichever is high” and its retrospective effect should be reconsidered.

Madhu.T.K
Dear Mr. Madhu,
In your post above, you mention "If, on the other hand, the earned wage is Rs 6800 and the minimum wages is Rs 6500, then we will have to calculate the bonus on Rs 7000, whereas the actual earned wages is only 6800". My understanding is different from this. According to the (amended) Act, section 12 will be something like this:
Where the salary or wage of an employee exceeds seven thousand rupees or the minimum wage whichever is higher per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were seven thousand rupees or the minimum wage whichever is higher per mensem.
Please observe that it says "WHERE the salary or wage of an employee EXCEEDS". So if the salary/wages is lesser than the maximum limit (higher of 7000 or minimum wage), only actual wages should be taken. So in this case on 6800.
In case there is anything wrong in this interpretation, please let me know.
Yes, you are right. In the case of employees whose wages is less than Rs 7000, the actual wage will be the base for calculation. Let us write the new section 12 as follows for the sake of understanding how it works.
Section 12: Calculation of bonus with respect to certain employees.- Where the salary or wage of an employee exceeds seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher per mensem.
Madhu.T.K
OK since that is clear now, I would like to go back to my earlier question on this thread which is still unresolved.

Since wages limit for bonus is now Rs.21,000, and wages includes only Basic + VDA, many Software Engineers will also be eligible for bonus. The bonus is now payable on minimum wages for the scheduled employment or Rs.7,000, whichever is higher, so I would like to know the minimum wages for Software Engineers in Karnataka.

Mr. Saswata Banerjee said "I do not think software development is in a scheduled employment. So the residual category will be shop and establishment (offices) and software engineers will be skilled or highly skilled."

But in Karnataka minimum wages for Shops and Commercial Establishments (see attached) there is no category for Skilled and Highly Skilled, the Class of employment is categorised from Group I to Group V and then Office Staff. So for the purpose of minimum wages for Software Engineers, I am wondering if Group IV - General Workers (item 9) will apply or if Office Staff - Computer Operator (item 5).

Any guidance on this would be appreciated.

Attached Files
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File Type: pdf Minimum wage Shops and Com. 2014-15.pdf (1.08 MB, 33 views)

The attachment pertains to shops and commercial establishments and spinning mills. But in most of the states,like kerala, separate minimum wages notification has been issued for IT and iTES industries. That means IT is a scheduled employment. If no separate minimum wages is fixed for IT companies, then the applicability of 21000 and 7000 are still there for them. If the software Engineers are getting Basic (+DA) pay of less than 21000, obviously, they would come under the bonus bracket. In the past also, small IT companies have been working out Bonus as per 10000 ceiling.
Madhu.T.K

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