Bonus Act Amendments:
The amendments have been made with the intention to bring more employees under the eligibility of the Bonus Act. While this will certainly be cheered by employees, this also creates a financial liability for employers.
1. Wage limit increased from Rs. 10,000 to Rs. 21,000
2. Bonus limit increased to 8.33% - 20% of Rs. 7000/ (or minimum wages, whichever is higher).
a. Bonus is payable for Employees whose wages are less than Rs.21000/- p.m. w.e.f.21/07/2014
b. Employees whose salary is more than the minimum wages are eligible for bonus as if his salary is rs. 7000/-p.m.
c. Empolyees whose salary is the minimum wages under MW Act and is more than rs. 7000/-p.m.are eligible for more bonus.
The amendments have been made with the intention to bring more employees under the eligibility of the Bonus Act. While this will certainly be cheered by employees, this also creates a financial liability for employers.
1. Wage limit increased from Rs. 10,000 to Rs. 21,000
2. Bonus limit increased to 8.33% - 20% of Rs. 7000/ (or minimum wages, whichever is higher).
a. Bonus is payable for Employees whose wages are less than Rs.21000/- p.m. w.e.f.21/07/2014
b. Employees whose salary is more than the minimum wages are eligible for bonus as if his salary is rs. 7000/-p.m.
c. Empolyees whose salary is the minimum wages under MW Act and is more than rs. 7000/-p.m.are eligible for more bonus.