Payment of Bonus Act Changes
I work for a Delhi-based BPO and handle the HR & Payroll Department. Recently, there have been certain changes in the Payment of Bonus Act, and we are quite skeptical and confused about whether we have to pay bonuses to the employees or not. Can anybody please help me out in removing my doubt as I haven't come across any organization except factories that are paying yearly or monthly bonuses to the employees?
We are in the process of salary restructuring and planning to include bonuses as well, provided it is applicable to us. We are a 4-year-old organization.
Looking forward to your valuable inputs.
Warm Regards,
Abhinav Tiwari
From India, New Delhi
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5I work for a Delhi-based BPO and handle the HR & Payroll Department. Recently, there have been certain changes in the Payment of Bonus Act, and we are quite skeptical and confused about whether we have to pay bonuses to the employees or not. Can anybody please help me out in removing my doubt as I haven't come across any organization except factories that are paying yearly or monthly bonuses to the employees?
We are in the process of salary restructuring and planning to include bonuses as well, provided it is applicable to us. We are a 4-year-old organization.
Looking forward to your valuable inputs.
Warm Regards,
Abhinav Tiwari
From India, New Delhi
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Dear Abhinav,
I presume that the salary of your employees is more than the ceiling of the salary fixed under section 2(13) of the Payment of Bonus Act, 1965, which is the reason for your present query. The raising of the threshold limit of the salary from Rs 10,000 to Rs 21,000 is one of the aspects of the recent amendment. Therefore, either as of now or after restructuring, those of your employees drawing a monthly salary of Rs 21,000 and below are entitled to statutory bonus.
From India, Salem
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I presume that the salary of your employees is more than the ceiling of the salary fixed under section 2(13) of the Payment of Bonus Act, 1965, which is the reason for your present query. The raising of the threshold limit of the salary from Rs 10,000 to Rs 21,000 is one of the aspects of the recent amendment. Therefore, either as of now or after restructuring, those of your employees drawing a monthly salary of Rs 21,000 and below are entitled to statutory bonus.
From India, Salem
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Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc