{"id":130,"date":"2016-11-22T15:47:20","date_gmt":"2016-11-22T15:47:20","guid":{"rendered":"http:\/\/localhost\/wp\/?p=130"},"modified":"2018-07-20T08:21:10","modified_gmt":"2018-07-20T08:21:10","slug":"a-generation-plugged-to-the-new-era-of-change-my-convocation-speech","status":"publish","type":"post","link":"http:\/\/greatsupports.in\/blog\/a-generation-plugged-to-the-new-era-of-change-my-convocation-speech\/","title":{"rendered":"THE PAYMENT OF BONUS (AMENDMENT) ACT, 2015"},"content":{"rendered":"

The Govt. of India has amended the Payment of Bonus Act, 1965 by an Ordinance issued on 27th<\/sup> October, 2007. <\/em><\/strong>
\nWhat is the impact ?<\/strong><\/p>\n

With the promulgations of this Ordinance, the salary ceiling has been increased to Rs.10, 000\/- P.M.\u00a0\u00a0 The entitlement for calculation of Bonus will be Rs. 3,500\/-P.M.\u00a0 Effective from 01\/04\/2006.<\/em><\/strong> The current celling of 3500\/- for bonus was fixed in April 1995. The bonus celling had been fixed at 1600\/- in 1965 which was raised to 2500\/- in 1985 and 3500\/- in 1995 by amending section 2 (13) of the payment of bonus act. <\/em><\/strong>
\n<\/em><\/strong>Those employed through contractor on building operation have now been covered under the Payment of Bonus Act.<\/em><\/strong><\/p>\n

\u00a0<\/em><\/strong>Though the cover is for employees earning basic and DA up to 10,000\/-, you should restrict their basic and DA to Rs.3, 500\/- p.m. or actual basic and DA for the month whichever is lower, for bonus computation. <\/em><\/strong><\/p>\n

\u00a0<\/em><\/strong>An employee should be in service for minimum 30 days during the previous financial year. Payments should be made before the expiry of 8 months from the start of a FY i.e. before end of NOV.<\/em><\/strong><\/p>\n

\u00a0<\/em><\/strong>The statutory rate of bonus is: Minimum 8.33% on basic and DA for the year. Maximum basic and DA cannot exceed 42,000\/- p.a. (3500 x 12) for bonus computation.<\/em><\/strong><\/p>\n

\u00a0<\/em><\/strong>As per provision of bonus act if you are getting less than or Rs-10,000 (Basic) as a salary and if you had worked 30 days in a account year you will be entitled for bonus and bonus will be calculated on less then or Rs-3500\/- PM (sec 12) @ rate of minimum 8.33% (sec.10)and maximum 20%(sec.11).the % depends on the allocable surplus of the company but one employer will have to pay 8.33% as a mandatory even if he is not earning profit. There is also a provision that for a new company the act have given a relaxation of 5 years but if during the year the company is earning profit then the company will have to pay bonus for the particular year (sec.16).<\/em><\/strong><\/p>\n

Amendment of Bonus bill 2015<\/strong><\/p>\n

THE PAYMENT OF BONUS (AMENDMENT) BILL, 2015
\nA\u00a0 BILL further to amend the Payment of Bonus Act, 1965.
\nBE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:\u2014
\n1. (1) This Act may be called the Payment of Bonus (Amendment) Act, 2015.
\n(2) It shall be deemed to have come into force on the 1st day of April, 2015.
\n2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the
\nprincipal Act), in clause (13), for the words \u2018\u2018ten thousand rupees\u2019\u2019, the words \u2018\u2018twenty-one
\nthousand rupees\u2019\u2019 shall be substituted.
\n3. In section 12 of the principal Act,\u2014
\n(i) for the words \u2018\u2018three thousand and five hundred rupees\u2019\u2019 at both the places
\nwhere they occur, the words \u2018\u2018seven thousand rupees or the minimum wage for the
\nscheduled employment, as fixed by the appropriate Government, whichever is higher\u2019\u2019
\nshall respectively be substituted;<\/p>\n

\u2018Explanation.\u2014For the purposes of this section, the expression
\n\u2018\u2018scheduled employment\u2019\u2019 shall have the same meaning as assigned to it in
\nclause (g) of section 2 of the Minimum Wages Act, 1948.\u2019.
\n4. In section 38 of the principal Act, for sub-section (1), the following sub-section shall
\nbe substituted, namely:\u2014
\n\u2018\u2018(1) The Central Government may, subject to the condition of previous publication,
\nby notification in the Official Gazette, make rules to carry out the provisions of this
\nAct.\u2019\u2019.
\n\u2014\u2014\u2014\u2014<\/p>\n

 <\/p>\n

What is the Impact.?\u00a0<\/strong><\/p>\n

Bonus is eligible to person earning up to 21000 PM.<\/p>\n

The upper limit of Bonus is 7000 PM or\u00a0 The minimum wages of the scheduled employment whichever is higher.<\/p>\n

 <\/p>\n

<\/div>","protected":false},"excerpt":{"rendered":"

The Govt. of India has amended the Payment of Bonus Act, 1965 by an Ordinance issued on 27th October, 2007. What is the impact ? With the promulgations of this… Read more »<\/a><\/p>\n

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