How Does the New Bonus Payment Amendment Affect Our Current Employee Bonus Policy?

nehakothari
Consequent to the amendment to the Payment of Bonus Act 1965, promulgated by the President, the ceiling of the minimum basic salary has been raised to INR 10,000 for the payment of Bonus.

We were informed that Bonus has to be paid to the employees who are drawing a Basic salary of INR 10,000 or less per month, and the payment has to take place in Nov. 07.

We wish to inform you that our company is paying Bonus to all employees irrespective of their Basic Salary amount. The minimum amount of bonus we are paying is INR 12,000 per annum, and the same is paid in the month of April for the previous financial year. It is forming part and parcel of Cost to Company per annum.

Considering the bonus amount paid by our company, we would like to know whether our company is still bound by the above said promulgation by the President of India to pay bonus to the employees.
Madhu.T.K
It is to be understood that your company is not following the statutory ruling on payment of bonuses. If anyone pays better, that is well and good, but if the employer insists on paying bonuses according to the Act, then the new amendment will have to be adhered to. Previously, when the salary ceiling was Rs. 3500, the bonuses of all those whose salaries were between 2500 and 3500 were calculated as if their salary were 2500. Now it has been raised to 3500, and those earning between 3500 and 10000 will receive bonuses calculated at 3500 only.

Madhu.T.K
harpreet_virdi
Hi there!

Can anyone tell me about the changes in the Haryana Act regarding minimum wages? Also, could anyone provide me with the new act including the latest amendments?
R.N.Khola
Dear Harpreet,

This thread relates to an amendment in the Bonus Act. Even then, it is hereby clarified that the Minimum Wages Act, 1948, is a Central Act. The Haryana Government has not made any amendments. The Government of Haryana has increased the minimum rates of wages for employees working with different scheduled employments wef 01.01.2010.

With Regards,
R.N.Khola

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