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.21000/- p.m. w.e.f.21/07/2014
b. Employees whose salary is more than the minimum wages are eligible for bonus as if his salary is rs. 7000/-p.m.
c. Empolyees whose salary is the minimum wages under MW Act and is more than rs. 7000/-p.m.are eligible for more bonus.
From India, Pune
4The 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.21000/- p.m. w.e.f.21/07/2014
b. Employees whose salary is more than the minimum wages are eligible for bonus as if his salary is rs. 7000/-p.m.
c. Empolyees whose salary is the minimum wages under MW Act and is more than rs. 7000/-p.m.are eligible for more bonus.
From India, Pune
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 can not 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
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 can not 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
we fully agree that law is a social adjustment . The fact that shrinkage of the real wages of the working class . However due to new amendenent there will be discripency in amount of bonus for differnet category. Unskilled worker worked for long years will be getting less bonus compare to worker opreator semiskilled/ skilled having less years of service. It is practically very difficult to dijest /convince old and loyal workers .
From India, Pune
From India, Pune
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Bonus act amendment gazette copy.pdf
THE PAYMENT OF BONUS ACT.doc