Amendment to Payment of Bonus Act, 1965
As per the amendment, the words "ten thousand rupees" in Section 2(13) have been substituted with "twenty-one thousand rupees."
Further, in Section 12 of the Principal Act, the words "three thousand and five hundred rupees" have been replaced with "seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate government, whichever is higher."
Query
As per the Act, the bonus should be paid as 7,000 or the minimum wage, whichever is higher. For example, in our state, the minimum wage is 7,800, which means we have to pay 7,800, right?
Our head office is located in Jubilee Hills, where we process all salary processes for all branches located in India.
Hence, my query here is that the minimum wage changes from state to state. For example, in Delhi, the minimum wage is higher when compared to Telangana.
- What rule should we follow for the payment of bonuses for all employees?
- We are currently paying a bonus as a monthly component of 7,000/12 = 583.3 for all employees. How can we easily adjust this for all employees?
- Minimum wages for employees in every state are also bifurcated as skilled, semi-skilled, and unskilled. How should we pay the bonus if employee bonuses are bifurcated by skill level?
Location: Hyderabad, India
minimum wages, City-India-Hyderabad, Payment of Bonus Act, Minimum wage, payment of bonus, salary process, employee bonus, min wage, bonus act, Country-India
From India, Hyderabad
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1As per the amendment, the words "ten thousand rupees" in Section 2(13) have been substituted with "twenty-one thousand rupees."
Further, in Section 12 of the Principal Act, the words "three thousand and five hundred rupees" have been replaced with "seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate government, whichever is higher."
Query
As per the Act, the bonus should be paid as 7,000 or the minimum wage, whichever is higher. For example, in our state, the minimum wage is 7,800, which means we have to pay 7,800, right?
Our head office is located in Jubilee Hills, where we process all salary processes for all branches located in India.
Hence, my query here is that the minimum wage changes from state to state. For example, in Delhi, the minimum wage is higher when compared to Telangana.
- What rule should we follow for the payment of bonuses for all employees?
- We are currently paying a bonus as a monthly component of 7,000/12 = 583.3 for all employees. How can we easily adjust this for all employees?
- Minimum wages for employees in every state are also bifurcated as skilled, semi-skilled, and unskilled. How should we pay the bonus if employee bonuses are bifurcated by skill level?
Location: Hyderabad, India
minimum wages, City-India-Hyderabad, Payment of Bonus Act, Minimum wage, payment of bonus, salary process, employee bonus, min wage, bonus act, Country-India
From India, Hyderabad
Acknowledge(0)Amend(0)
Payment of Bonus Act - Adjusting Bonus Payments According to Minimum Wages
To address the query on bonus payments and minimum wages, follow these steps:
- Determine the minimum wage applicable in each state where you have employees. This information is usually provided by the respective state governments.
- Calculate the minimum wage for each employee based on their skill level (Skill, semi-skilled, Unskilled) in alignment with the minimum wage rates set by the appropriate Government.
- Compare the calculated minimum wage with the fixed bonus amount. Pay the higher amount between the two to ensure compliance with the Amendment to the Payment of Bonus Act, 1965.
- Adjust the bonus payments accordingly for all employees based on the comparison between the fixed bonus amount and the minimum wage for their skill level in their respective states.
- Keep track of any changes in minimum wage rates across different states and update the bonus payments accordingly to ensure compliance at all times.
By following these steps, you can ensure that bonus payments are aligned with the minimum wage rates set by the appropriate Government, taking into account skill levels and variations across different states in India.
From India, Gurugram
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To address the query on bonus payments and minimum wages, follow these steps:
- Determine the minimum wage applicable in each state where you have employees. This information is usually provided by the respective state governments.
- Calculate the minimum wage for each employee based on their skill level (Skill, semi-skilled, Unskilled) in alignment with the minimum wage rates set by the appropriate Government.
- Compare the calculated minimum wage with the fixed bonus amount. Pay the higher amount between the two to ensure compliance with the Amendment to the Payment of Bonus Act, 1965.
- Adjust the bonus payments accordingly for all employees based on the comparison between the fixed bonus amount and the minimum wage for their skill level in their respective states.
- Keep track of any changes in minimum wage rates across different states and update the bonus payments accordingly to ensure compliance at all times.
By following these steps, you can ensure that bonus payments are aligned with the minimum wage rates set by the appropriate Government, taking into account skill levels and variations across different states in India.
From India, Gurugram
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The Payment Of Bonus Act 1965-Update-02- 01.01.16-Wage - 21K- Min Bons 7K-01.04.14.pdf
Amendment to Payment of Bonus Act 2015.jpg