Payment Of Bonus (Amendment) Act: Gazette Notification Attached For Downlod

Gazette Notification, dated 01.01.2016, on Bonus Amendment Act, 2015, with enhanced wage/salary and bonus limit is attached herewith.

Members may like to download the Gazette Notification for their reference and use. The Bonus Amendment Act, 2015 has been made effective retrospectively with effect from 01.04.2014.

Prepare a statement for the due bonus with reference to the enhanced limits of wages as well as the bonus rate. Deduct the amount of bonus already drawn in order to arrive at the difference to be paid to the individual employees.

Dear Ramakanth,

Ethically speaking, the employees who left the organization and were entitled/paid a bonus at existing wage rates/ceiling are also entitled to the arrears of the bonus. As a sincere executive, you must keep calculations ready and draw the same for the purpose of disbursement, as later on stray claim cases from individual to individual may waste a lot of time and cause confusion in drawing the arrears of the bonus. Moreover, from a commercial accounting and statutory audit point of view for the organization, the amount of unclaimed arrears of the bonus has to be shown as a liability in the books of accounts of the organization to arrive at the true results of the profit and loss of the organization to appear in the annual audited accounts.

Hello, Sir,

Could you please guide me on the latest amendment to the Bonus Act 2015? We have paid Ex-gratia to all our employees at 20% on 3500/- for the year 2014-15.

My question is, do we need to make a differential payment to all employees for the year 2014-15 at 20%?

Thank you in advance.
Sagar

Dear Sagar,

Your question is not clear, whether ex-gratia payment was made in the name of a bonus or otherwise. If paid as ex-gratia bonus, the amount should not be less than that prescribed in the amendment act. If paid less than the enacted sum of the bonus (as is evident) with reference to the revised wages, you will have to pay the difference.

Hi all,

With respect to the above query regarding the bonus effective from 2014, it has come to my attention that there was a mistake. The bonus will actually be effective from 2015.

Kindly focus on this issue, please.

Thank you.

Mr. Bittu,

Can you please quote the source of your information? Also, do you feel anyone can benefit from such a baseless rumor on your part if you cannot interpret the enacted law properly? Better go through the Act if you have not already seen it.

By making such a baseless statement, do you mean to suggest that an Act duly passed by both houses and assented to by the Honorable President of India is wrong, and only you and your source of information are correct?

Dear Sir,

Thank you very much for your guidance. Yes, Ex-gratia was paid in the name of a bonus of Rs 8400/- to all existing as well as former employees for the year 2014-15. Therefore, as per the amendment, the company will have to make a payment of the difference amount (16800-8400) of Rs 8400/- to all employees. Am I correct?

Regards,
Sagar Aphale

Dear Sagar,

You have not made it clear on another issue - whether the bonus is being paid by your company to all employees irrespective of the prescribed wage limit or to the employees falling within the prescribed wage limit.

Sir,

Our company gives half of the bonus as prepaid, which includes in the salary (including increment), and also deducts ESI. Is this correct? How can I fill out the bonus return?

Hi, I have a PF account for which I have applied for withdrawal. However, the claim was not processed due to a compliance issue. The coverage should be for the year 2011, but it started in December 2015. The company had paid the administrative charges for the differential year. I was informed by the compliance department of the PF office that some employees in the differential year were eligible for the PF scheme, but the company did not make the required contributions from the employees and employers' end.

The PF department is currently holding the settlement and has conveyed that they have handed over the case to the enforcement officer. They are waiting for his report, which will be submitted after the necessary inspection of the organization. I would like to request your suggestions on how to settle the PF amount. Should I also consider filing a case against my employer and the PF office in the labor court?

Dear Sir,

There are 16 employees working in my company. Will I have to pay a bonus to the employees?