Understanding the Bonus Act Amendments: What Do They Really Mean for You?

bharathibadar
Understanding the Bonus Act Amendments

What does the Bonus Act Amendment state? I need a clear idea about all the amendments of the Bonus Act, 1965, 1975, etc.

Thank you.
korgaonkar k a
Understanding the Bonus Act Amendments

Your query is not specific and is quite vague. Which amendment(s) in the Bonus Act are you looking for? This Act of 1965 has been amended several times in the past. Why do you need all the amendments now? It is important to focus on the current law.

In this forum, there are several discussions on the current law regarding bonuses. The latest gazetted notification pertains to filing the return online, which is also available here if you search.

Major Amendments in the Bonus Act

The major amendments in this Act were made in 1985, 1995, and 2007, enhancing the eligible salary limit and ceiling limit for the calculation of bonuses as follows, ever since the law was enacted in 1965:

Year / Salary Limit / Ceiling Limit

- 1965 / 1600 / 750
- 1985 / 2500 / 1600
- 1995 / 3500 / 2500
- 2007 / 1000 / 3500

Through the amendment of 2007, construction employees engaged by contractors are also covered under the Payment of Bonus Act, effective from 01.04.2006.

The Government of Maharashtra, through its ordinance dated 17.09.2010, has mandated the payment of bonuses through cheque or bank account only. I am not aware of the regulations in other states.

Regards,
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