Hi,
It would be appreciated if we could get clarification on the payment of bonus amendment. If an employee's basic is Rs. 10,000/-, then how much do we need to pay - either we have to pay 8.33% on ceiling limit (Rs. 3,500) or 8.33% on basic salary (Rs. 10,000)? As per the Ministry of Labour & Employment, New Delhi, Kartika 07, 1929/October 29, 2007 VBA:NR:LK:29/10/07.
On Monday, October 29, 2007, the Ministry of Labour & Employment issued a press note at 19:10 IST stating that on 27th October, 2007, the President promulgated the Payment of Bonus (Amendment) ordinance, 2007, containing the following amendments:
i) Amendment to clause (13) of Section 2 of the Payment of Bonus Act, 1965 to raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3,500/- per month to Rs. 10,000/- per month. ii) Amendment to section 12 of the Payment of Bonus Act, 1965 to raise the ceiling for calculation purposes from the salary or wage of Rs. 2,500/- per month to Rs. 3,500/- per month; iii) Deletion of clause (vi) of section 32 of the Payment of Bonus Act, 1965, so as to cover the employees employed through contractors on building operations. Thus, the employees, including those employed through contractors on building operations, will be entitled to receive bonus as per the revised ceilings for the year 2006-07 and onwards. The Ordinance shall be deemed to have come into force on 1st April 2006.
Regards,
Joseph
It would be appreciated if we could get clarification on the payment of bonus amendment. If an employee's basic is Rs. 10,000/-, then how much do we need to pay - either we have to pay 8.33% on ceiling limit (Rs. 3,500) or 8.33% on basic salary (Rs. 10,000)? As per the Ministry of Labour & Employment, New Delhi, Kartika 07, 1929/October 29, 2007 VBA:NR:LK:29/10/07.
On Monday, October 29, 2007, the Ministry of Labour & Employment issued a press note at 19:10 IST stating that on 27th October, 2007, the President promulgated the Payment of Bonus (Amendment) ordinance, 2007, containing the following amendments:
i) Amendment to clause (13) of Section 2 of the Payment of Bonus Act, 1965 to raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3,500/- per month to Rs. 10,000/- per month. ii) Amendment to section 12 of the Payment of Bonus Act, 1965 to raise the ceiling for calculation purposes from the salary or wage of Rs. 2,500/- per month to Rs. 3,500/- per month; iii) Deletion of clause (vi) of section 32 of the Payment of Bonus Act, 1965, so as to cover the employees employed through contractors on building operations. Thus, the employees, including those employed through contractors on building operations, will be entitled to receive bonus as per the revised ceilings for the year 2006-07 and onwards. The Ordinance shall be deemed to have come into force on 1st April 2006.
Regards,
Joseph