24th December 2015
The Payment of Bonus (Amendment) Bill, 2015 has been passed by both the Houses in the Winter Session 2015. It shall now proceed for the Presidential sanction after which, the Payment of Bonus Act will stand amended.
The Payment Of Bonus (Amendment) Bill, 2015 was introduced by Labour Minister Bandaru Dattatreya in the Lok Sabha on 07.12.15 and was passed on 22.12.15. Rajya Sabha passed it on 23.12.15.
- Employees eligible for bonus:
Earlier the Act mandated payment of bonus to employees’ whose salary or wage is up to Rs 10,000 per month. The Bill has increased this eligibility limit to Rs 21,000 per month.
- Calculation of bonus:
Earlier as per the Act, if an employee’s salary is more than Rs 3,500 per month, for the purposes of calculation of bonus, the salary will be assumed to be Rs 3,500 per month.
The Bill has raised this calculation ceiling to Rs 7,000 per month or the minimum wage notified for the employment under the Minimum Wages Act, 1948 (whichever is higher).
- Retrospective effect:
The Bill is going to come into effect retrospectively. The date from which the Bill is going to come into effect will be informed after publication in the Official Gazette.
Click here for an over view of Bonus under India Employment law
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