This implies a retrospective effect, which is an added liability for employers. Additionally, the wage ceiling for calculation of bonus has been increased from inr 3500 to inr 7000 per month. Jan 04, 2016 vide notification dated 1st january, 2016 issued by the government of india, the payment of bonus act, 1965, has been amended to increase the wage ceiling in section 2 of the act, from rs. The salient features of the payment of bonus amendment act 2015 is as follows. The bill seeks to increase this eligibility limit to rs 21,000 per month. The bill seeks to amend the payment of bonus act, 1965.
The amendments have increased the wage threshold for determining applicability of the act from inr 10,000 to inr 21,000 per month. Under the act, bonus is calculated on the basis of. Features of payment of bonus amendment act 2015 taxin. Calculation of bonus as per bonus act amendment of 2015 if the gross earning of your employees is below rs. The parliament has passed the amendment to the payment of bonus act and the act has received the assent of the president on the 31st december 2015. The government of india has notified the payment of bonus amendment act, 2015, by way of a notification dated 01jan2016. The payment of bonus act applies to every factory and establishment employing not less than 20 persons on any day during the accounting year. The payment of bonus amendment act, 2015 lawyers law. Friends, pl find attached payment of bonus amendment bill 2015 introduced in lok sabha on 7. Agrawal for posting the copy of the passed bill for the awareness of one and all.
Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Amendment in payment of bonus act 2015 and increase in. The key changes in the payment of bonus amendment,act 2015 1. If you have any doubts or questions kindly drop them in the comment section below. The following amendment has been made in bonus act recently by the payment of bonus amendment act, 2015. The 2015 amendment of the payment of bonus act added the following clause. The payment of bonus amendment bill, 2015 a bill further to amend the payment of bonus act, 1965. The payment of bonus act, 1965 is enacted to provide for the payment of statutory bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith. Govt doubles monthly bonus calculation ceiling to rs 7,000. Recently, the government approved amendments to the bonus act, 1965 raising the limit for calculations of bonuses. The payment of bonus act, 1965 has undergone several amendments.
Where the salary of the employee exceeds inr 7000 per month, the bonus payable to such an employee shall be calculated as if hisher salary were inr 7000 or the minimum wage for the scheduled employment as appropriated by the respective government. The act provides for the annual payment of bonus to employees of certain establishments including factories and establishments employing 20 or more persons. The payment of bonus act provides for the annual payment of bonus to employees of certain establishments including factories and establishments employing 20 or more persons. Bonus amendment act, 2015, vide gazette notification no. Payment of bonus act and amendments analysis of 2015. The payment of bonus amendment act, 2015 as passed was published on the egazette website on january 1, 2016 for notice upon the general public. Bombay high court stays the retrospective operation of the. Click the link below to view the file the payment of bonus amendment act 2015 notification file reference number gazette notification file date 31. This ends our post on payment of bonus act applicability and calculations. Lok sabha passes the payment of bonus amendment bill, 2015. You can find the attachment on payment of bonus act, 2015 here.
On 31 december 2015 the president gave his assent to certain amendments to the payment of bonus act, 1965. Payment of bonus amendment act2015 gazzette notification. Stay of retrospective effect of the payment of bonus. The payment of bonus amendment bill,2015 received the assent of the president on the 31st december, 2015 and now becomes an act.
Payment of bonus amendment bill 2015 as passed pdf. While the base salary usually is a fixed amount per month, bonus payments more often than not vary depending on known criteria, such as the annual turnover, or the net number of additional customers acquired, or the current value of the stock of a public company. World war when certain textile mills granted 10% of wages as war bonus to their. The practice of paying bonus in india appears to have originated during first. The calculation of bonus act in video is as per revised act. Payment of bonus amendment act, 2015 employment and hr. The payment of bonus amendment bill, 2015 was introduced in lok sabha by the minister of state for labour and employment, mr. The lok sabha has passed the payment of bonus amendment bill, 2015 to allow doubling of wage ceiling for calculating bonus of factory workers and establishments with 20 or more workers the bill seeks to amend the payment of bonus act, 1965 and was introduced in lok sabha by the minister of state mos for labour and employment key provisions of bill. Announcement of calendar year cy 2015 medicare advantage capitation rates and medicare advantage and part d payment policies and final call letter. In india there is a principle law relating to this procedure of payment of bonus to the employees and that principle law is named as payment of bonus act, 1965. As per amended act more workers eligible for bonus due to raising of monthly maximum pay limit. An employee has to have worked for at least 30 days in that company.
Changes the way that medicare rewards clinicians for value over volume. After the notification of the amendment act there was outcry all over the country specifically in the labour intensive industries. Earlier bonus act was only applicable to employees earning up to rs. Under the principal act, every employee who draws a salary of inr 10,000 or below per month and who has worked for not less than 30 days in an accounting year, is. The amendment has brought about significant changes to section 2 definitions and section 12 calculation of bonus with respect to certain employees. The statutory bonus came into existence with the approval of the payment of bonus act in 1965 by the government. The payment of bonus amendment bill, 2015 to enhance the monthly bonus calculation ceiling to rs 7,000 per month from existing rs. Amendment in payment of bonus act linkedin slideshare. The payment of bonus amendment act 2015 notification. The amendment act provides for major changes in the eligibility limit and increase in ceiling for calculation of bonus of employees under the payment of bonus act,1965. The payment of bonus amendment act, 2015 had received assent of the president of india on 31 december 2015. The salary limited fixed for eligibility purposes is rs. The payment of bonus amendment act, 2015 received presidential assent on 31 december 2015. The payment of bonus act, 1965 has been amended and called as the payment of.
The conditions which are to be satisfied for the payment of bonus are. Be it enacted by parliament in the sixtysixth year of the republic of india as. You can find the attachment on payment of bonus act, 1965 here. Pranab mukherjee affixed his signature on the payment of bonus amendment bill, 2015 and the payment of bonus amendment act, 2015 amendment act came into existence.
The notification impacts the payment of bonus act, 1965, and mandates the following changes with regard to statutory bonus calculation. In accordance with section 1853b1 of the social security act the act, we are notifying you of the annual medicare advantage ma capitation rate for each ma payment area for cy 2015. A bonus is an additional payment given to employees with the intention to motivate them. More so, it has also made this act applicable from april 1st, 2014. Background the act provides a statutory right to employees of an establishment to share the profits of hisher employer. Establishments will now have to pay the unpaid bonus for the previous 2. The key changes in the payment of bonus amendment, act 2015 1. Save as otherwise provided in this act, it shall apply toa every factory. A bonus payment is usually made to employees in addition to their base salary as part of their wages or salary. The present enactment, namely, the payment of bonus amendment act of 2015 act no. The payment of bonus amendment act, 2015 posted by gautham on january 6, 2016.
The payment of bonus amendment bill, 2015 prsindia. Bonus is to be paid within 8 months of closing the book of accounts. The payment of bonus amendment bill, 2015 received the assent of the president on 31. Act 1961downloads pdf the employees state insurance act 1948downloads pdf. Payment of bonus act applicability and calculations. The payment of bonus amendment bill, 2015 labour laws. Therefore, the cost associated with bonus payments could be double, based on the organizations performance. Be it enacted by parliament in the sixteenth year of the republic. Payment of bonus amendment act, 2015 blog agama law. An act further to amend the payment of bonus act, 1965. This is an act intended to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.
Bonus payment for employees payment of bonus act in. Beit enacted by parliament in the sixtysixth year of the republic of india as. The act also provides for minimum bonus and maximum bonus payable to the eligible employees. The act applies to all factories and every other establishments, which employs twenty or more workmen. The payment of bonus act, 1965 provides for a minimum bonus of 8. Payment of bonus act amendment gazette notification. The said amendment act provides for changes in the eligibility limit and calculation of bonus of the employees. The eligibility of payment of bonus to employees has been increased from drawn salary of. The medicare access and chip reauthorization act of 2015 macra is a bipartisan legislation signed into law on april 16, 2015. Payment of bonusamendment act,2015 ministry of labour. According to this act, pay bonus to their employees based on their profitability each year. The act mandates payment of bonus to employees whose salary or wage is up to rs 10,000 per month.
The payment of gratuity act 1972downloads pdf the payment of bonus act. September, 1965 an act to provide for the payment of bonus to persons employed in cert ain establ ishments on the basis of profits or on t he basis of production or productivity and for matters connect ed therewith. An act to provide for the payment of bonus to persons employed in certain establishments and for matters connected therewith. Read expert opinions, top news, insights and trends on the economic times. The principal act provided that the bonus payable to an employee shall be in proportion to hisher salary.