How Will the 2007 Amendments to the Payment of Bonus Act Affect Your Salary?

Amendment to the Payment of Bonus Act, 1965

14:45 IST

The Cabinet, in its meeting held on October 1, 2007, approved the Amendments to the Payment of Bonus Act, 1965, which are as follows:

i) Amendment to Section 2(13): To raise the eligibility limit for payment of bonus from the salary or wage of Rs. to Rs. 10,000 per month.

ii) Amendment to Section 12: To raise the ceiling for calculation purposes from the salary or wage of Rs. to Rs. per month, and;

iii) Deletion of Section 32(vi): To cover the employees employed through contractors on building operations.

SH/CS

http://pib.nic.in/release/release.asp?relid=31572

Query about the Amendment of the Bonus Act has been more prevalent in the last 60 days.

I came across the above link on the Union Government's website and shared it for the benefit of our members.

Hi,

I would like to ask about the Payment of Bonus Act. Will I receive a bonus if my basic salary was less than 10,000 Rs. in 2008-2009? If yes, when is this bonus generally released, considering the end of the 2008-2009 financial year?

Ronit

PUBLIC NOTICE

Department of Labour
Government of Maharashtra

Maharashtra mandates payment of bonuses only through cheques or banks. The Government of Maharashtra, via an ordinance from the Labour Department dated 17.09.2010, has mandated the payment of bonuses to all workers/employees through a cheque or bank account only. Employers should, therefore, immediately open their own bank accounts and those of their workers if not already opened in any nationalized or scheduled banks having core banking facilities. In case of any concerns, please contact the local labor office.

Commissioner of Labour
Maharashtra State
DGIPR/2010-11/1446

I am aware that the minimum bonus is 8.33% and eligibility is between 3,500-10,000. However, I am confused about whether the maximum limit of 10,000/- applies to total gross earnings, basic salary, or basic + conveyance. If possible, please send me a copy of the relevant act.

Thank you.

Latest Amendment in Bonus Act

In Maharashtra, there has been a recent amendment to the Bonus Act.

Dear Sir,

I am working in a small-scale industry and would like to know if I am eligible for a current year bonus as per the new act with my details below.

My basic salary + DA is Rs. 22,500 per month, and my PF deduction is Rs. 1,800 per month.

Requesting your advice.