Consequently, it has also doubled the limit for monthly bonus calculation to Rs 7,000 per month from Rs 3,500, thus substantially increasing the amount of bonus.
The move is in line with the demands of 10 central trade unions, which had observed a day-long strike on September 22.
The amendments to the Payment of Bonus Act were approved by Parliament in the recently concluded winter session.
The Payment of Bonus Act 1965 is applicable to every factory and other establishment in which 20 or more people are employed on any day during an accounting year.
The revised Act will also provide for a new proviso in Section 12, which empowers the central government to vary the basis of computing the bonus.
As it stands today, Section 12 says that where the salary or wage of an employee exceeds Rs 3,500 per month the minimum or maximum bonus payable to the employee shall be calculated as if his salary or wage were Rs 3,500 per month.
The last amendment to both the eligibility limit and the bonus ceiling under the Act was carried out in 2007 and made effective from April 1, 2006.
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14 Comments on this Story
suman nani2201780 days ago
it's ok what about min salary people are suffering from so many problems please solve
GopiRaman Alok1837 days ago
great to see
guptaashok1948 Gupta1837 days ago
Yes, in fact, there should not be any limit on the bonus because to employees worked out on the basis of profits earned by the company during the year.