Bonus Act: Changes in Offing

The Payment Of Bonus (Amendment) Bill, 2015 was tabled in Lokhasabha on 7.12.15, for debate. It proposes to raise the salary ceiling to Rs 21,000 per month from Rs 10,000 and It proposes to raise the monthly bonus calculation ceiling to Rs 7,000 or THE MINIMUM WAGE FOR THE SCHEDULED EMPLOYMENT, AS FIXED BY THE APPROPRIATE GOVERNMENT, WHICHEVER IS HIGHER PER MONTH from Rs 3500

The changes in the Payment of Bonus Act would raise the salary limit for getting a bonus from Rs. 10,000/- per month to Rs.19,000, and are at an advanced stage and the government is seeking to retain the limits of Minimum Bonus of 8.33 per cent and Maximum Bonus of 20 per cent. 

But the computation of bonus on a salary ceiling of Rs. 3,500 p.m. for those drawing more than Rs. 3,500 p.m. salary is being proposed to be hiked to with Rs.6, 500 p.m. The maximum bonus of 20 per cent will increase from the present ceiling of Rs. 8400 p.a. to Rs. 15,600 p.a. Other changes in labour laws that were being discussed were enhancing the maternity benefit from twelve weeks to twenty four weeks. 

In respect of Payment of Gratuity, the five year minimum service clause was being proposed to be modified and Gratuity portability between employments was also being contemplated. More details are awaited.


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