How Does the Maharashtra Bonus Amendment Affect Your Payment Method?

Dear friends, I am attaching a copy of the Payment of Bonus (Maharashtra Amendment) Ordinance 2010 issued by the Governor of Maharashtra on 17.9.2010, which amends the Payment of Bonus Act in its application to the State of Maharashtra.

As per the amendment, the bonus under the Act shall be paid either by an account payee cheque drawn in favor of the employee or by crediting the same in the bank account of an employee, and not in cash.

Regards,
PC Agrawal

The Payment of Bonus (Maharashtra Amendment) Ordinance 2010 mandates that bonuses under the Act in Maharashtra must be paid through bank transfer or by account payee cheque, not in cash. To comply with this requirement, employers need to ensure that bonuses are either credited to the employee's bank account or issued via a cheque drawn in the employee's name. This regulation aims to promote transparency and traceability in bonus payments, safeguarding the interests of both employers and employees. It is essential for businesses operating in Maharashtra to adhere to this legal provision to avoid any penalties or non-compliance issues.