How Will the New Bonus Bill Affect Your Paycheck? Understanding the 2015 Amendment

Introduction of the Payment of Bonus (Amendment) Bill, 2015

The government on Monday introduced a bill in Lok Sabha that seeks to enhance the pay eligibility limit of an employee for a bonus to Rs. 21,000 per month, from Rs. 10,000, to make more workers eligible for the benefit. The Payment of Bonus (Amendment) Bill, 2015 also seeks to increase the monthly bonus calculation ceiling to Rs. 7,000 per month from the existing Rs. 3,500. This will significantly increase the quantum of the bonus.

Effective Date and Applicability

The amendment bill will be effective from April 1, 2015. The bill will amend the Payment of Bonus Act, 1965, which is applicable to every factory and other establishment in which 20 or more persons are employed on any day during an accounting year. The bill also provides for a new proviso in Section 12, which empowers the central government to vary the basis of computing the bonus.

Hi Buddy,

The above amendment bill is notified in the government gazette. The above post conveyed that the bill is introduced in LS. Did the same bill pass in both houses of parliament, receive presidential assent, and get notified?

Please shed some light on this, friends.

With Regards,
Mr. Thumbs Up

When it will be gazetted...

In the same way, the government should take action on minimum wages in India as it varies by state. What the government has implemented in terms of bonuses should be considered.