Labor Laws Amendment Index Update: How Can We Improve This Resource Together?

Here I am forwarding the Labor Laws Amendment Index updated in November 2010. I hope it will be useful to all of you. If there are any suggestions or corrections, they are most welcome.

Regards,
Niyaj Ahmed
[Email Removed For Privacy Reasons]

Please check on the Bonus Act amendment. In my opinion, the wage ceiling still remains at Rs. 3,500/-, and the eligibility for receiving a bonus is Rs. 10,000/-. Kindly correct me if my statement is incorrect.

Regards,
M.V. KANNAN

Dear Mr. Niyaz,

You have drawn a wonderful chart showing the latest overall amendments in various labor laws. I heartily appreciate you sharing this information with us. I have a query regarding the wage ceiling under the Payment of Bonus Act, which has been amended from ₹3500 to ₹5000. Please confirm.

Thanks and regards,
Mangesh Wakodkar
Sr. Officer HRD
Neepaz V Forge (India) Ltd

The table is very useful and nicely prepared. It would be even more helpful if you could indicate the amendments included in the table by specifying the dates from which they are effective to which they are effective.

Dear Niyaj Ahmed,

Thank you for sharing. Please clarify the following amendments:

1- Raising the PF EDLI Limit to Rs. 1,00,000/- from Rs. 60,000/- or Rs. 1,02,000/- from Rs. 60,000/-
AND
Effective date is 09/09/2010 or 18/06/2010

2- As per my concern, the Bonus ceiling Bill from Rs. 3,500/- to Rs. 5,000/- was submitted in parliament. In the attached notification, is it passed or not? If it has been passed, please share the passed notification.

Regards,
Bijoy

Dear All,

As per the latest amendment in the Bonus Act, the salary ceiling is Rs. 10,000, beyond which one is not eligible to receive a bonus under the Bonus Act. For those drawing a salary between Rs. 3,500 and Rs. 10,000, the bonus will be calculated based on Rs. 3,500. This means the maximum bonus a person can earn at 20% is Rs. 8,400 per annum. Previously, this was calculated at Rs. 2,500, resulting in the maximum bonus at 20% being Rs. 6,000 per annum.

The list by Niraj is a good attempt but requires updating under various Acts. Many changes are occurring every day, making it increasingly challenging to keep track. Nonetheless, good attempt, Mr. Niraj.

Regards

I am reproducing the amendment you mentioned as incorrect.

"The Payment Of Bonus Act, 1965: Bonus amount is to be computed on the wage ceiling of Rs. 3,500/-. Now the bonus amount is to be computed on the wage ceiling of Rs. 5,000/-. (27-Oct-07)"

The proposed bill no. 15 of 2010 is for the proposed amendment, yet to be passed by the parliament.

THE PROPOSED AMENDMENTS IN SHORT ARE AS FOLLOWS:
1) MAXIMUM SALARY CEILING IS INCREASED FROM RS. 3,500/- TO RS. 5,000/- PER MONTH
2) APPLICABILITY -- BASIC + D.A. IF ANY RS. 10,000/- TO RS. 15,000/- PER MONTH
3) MINIMUM BONUS PERCENTAGE-- FROM 8.33% TO 11%.

Dear Mr. Niyag,

Thank you for this beautiful and useful information. However, I believe the amendment in the Bonus Act that you mentioned regarding the wage ceiling for the computation of Bonus is amended from 3500/- to 5000/-. As per my information, it is only a bill to be presented in the house and has not been passed yet.

Regards,
Rajesh Chakraborty

Thank you so much for sharing with all of our friends. The only query is to please confirm the bonus ceiling—whether it is Rs. 5000/- or Rs. 3500/-. I believe it is now Rs. 3500/- and not Rs. 5000/-.

Regards,
Basanta

Mr. Niyaz,

Thank you for sharing; please note:

1. Bonus eligibility ceiling is Rs. 10,000 (basic + DA).
2. Rs. 5000 is the cap for the maximum bonus payable, which is pending.

Also, please make a note of one more amendment in the Workmen's Compensation Act: wages of Rs. 2400 have been revised to Rs. 8000.

Regards,
K. Ramachandra
Bangalore

Dear Niyaj,

Thank you for sharing the information. However, you should look into the Payment of Bonus Act 1965 amendment because the limit of calculation is still Rs. 3500/-, whereas you mentioned Rs. 5000/-. The Bill has been presented in Lokh Sabha, but further approval is still pending on this Bill.

For more clarification, please refer to bill no. 15 of 2010 for the Payment of Bonus Act-1965.

Thanks & Regards,
Sunil Sharma
Email: ssmbahr@gmail.com

Dear All,

Here I am forwarding the Labour Laws Amendment Index updated in November 2010. I hope it will be useful to all of you. If any suggestions or corrections are needed, they are most welcome.

Regards,
Niyaj Ahmed
niyaj_hr@yahoo.com

Dear Niyaj,

You have made appreciable efforts. However, the statement, "Now the bonus amount is to be computed on the wages ceiling of Rs.5,000/-," needs a minor correction as follows:

- Wage Ceiling: Rs. 10,000/-
- Maximum Limit: Rs. 3,500/-

As far as I understand, no changes have been notified so far. If any changes have been made in the Payment of Bonus Act, please correct me.

RP Mishra

Very good attempt at compilation, and the greatest thing is sharing it with everyone. Thank you very much.

Regards,
Keshav Korgaonkar

Dear Ushasankar,

The attempt of Niyaj is no doubt praiseworthy and useful day-to-day until the next amendments. However, he skips the amendment pertaining to the Workmen/Employees Compensation Act, which contends that the presumed salary for calculation purposes has been raised from Rs. 4000/- to Rs. 8000/-. Secondly, the bonus ceiling of the presumed salary is Rs. 3500/- and not Rs. 5000/- as it is under consideration in Parliament. Here, I am attaching an amendment pertaining to the Industrial Disputes Act as the wage ceiling has been raised from Rs. 1600 to Rs. 10000/-.

Hope this information will be useful to you.

Regards,
KIRAN KALE

Dear Ushasankar, Sorry, I forgot to attach an amendment pertaining to the I.D. Act.

Regards, Kiran Kale

Rs. 3500/- and Rs. 5000/- are calculation ceilings, not the wages ceiling. However, Mr. Niyaj, to my knowledge, the Bonus Act has not yet been amended as the notification by the government has not been issued. If anyone has the notification, please do send it.

Thanks,
Navneet Singh
Dy. Manager

You have done good work in showing the latest overall amendments in various labor laws. I heartily appreciate you for sharing this information with us.

Thanks and regards,

GIRRAJ SHARMA
Manager-HR
Shine, Metal Udyog (P) Ltd

You have done a very good job showing the latest overall amendments in various labor laws. I heartily appreciate you for sharing this information with us.

Thanks and regards,

Girraj Sharma
Manager-HR
Shine Metal Udyog (P) Ltd

The information is quite okay, but the I.D. Act was also amended to raise the wages from Rs. 1600.00 to Rs. 10,000.00 per month, with effect from 15/9/2010. Kindly verify and incorporate.

Thanks.

Regards,
Niranjan Patnaik
Manager, HR
Kashi Kanchan Pvt. Ltd.
Berhampur (Orissa)

It's really a fantastic update, but I would like to know the notification from the Labour Ministry regarding the Factories Amendment Bill 2005 and The Payment of Bonus Amendment 2010.

Regards,
Narendra Nath
Asst. Manager HR

Thank you for the update on the amendment; it is very helpful for us. I am having difficulty understanding the computation of the bonus and the calculation of gratuity. Please provide me with the calculations for the above, along with an example, if you don't mind.

Regards,
Padmanabh Newar.

Dear Seniors,

This is Reema here, and I am working as a Recruitment Executive in a private limited company. My question is, I have completed my MBA with a specialization in HR and a 1-year diploma course in IRPM (Industrial Relations and Personnel Management) in Feb-10. However, I do not want to pause my education. Similarly, I am not interested in pursuing LL.B. Could you please suggest what I can do further in HR/Labour laws? I am keen to enter manufacturing industries like Pharma, Automobile, etc.

Furthermore, I would like guidance on the types of questions that may be asked in interviews conducted by manufacturing industries. I am quite concerned about this.

Regards,
Reema Purohit

Dear Mr. Niyaz,

Thank you for the effort you have made to draw a chart of the latest amendments in important labor laws at a glance. All community members will definitely benefit from this.

However, I believe no amendments in the Bonus Act have been recently made to raise the wage ceiling to Rs. 5000/-. The wage ceiling for an employee to become eligible for a bonus was actually raised to Rs. 10000/- in the year 2007. For the purpose of bonus calculation, the maximum wage considered will be Rs. 3500/-, even if an employee's wage exceeds Rs. 3500/- up to Rs. 10000/- per month.

SK Hota Head-HR Jayshree Chemicals Ltd., Ganjam (Orissa)

Nice presentation. However, I found a mistake in Sl. No. 10 regarding the wage ceiling limit of the Bonus Act, i.e., Rs. 10,000 instead of Rs. 5,000. Please check it out.

Thanks for consolidating all the amendments in one sheet.

Regards

Thank you for the post regarding the information on the Labour Law Amendment Index 2011. However, you have not provided details on Indian law or laws from other cities/countries. Kindly include all relevant information in the discussion board.

Thank you once again.