Dear Friends,
The Government of India, through the Payment of Bonus (Amendment) Bill-2010 (15 of 2010) published in the Gazette of India, proposes the following amendments:
1. To increase the minimum bonus limit from 8.33% to 11%.
2. To raise the wage ceiling of coverable employees from Rs. 10,000 to Rs. 15,000 per month.
3. To enhance the calculation of bonus from Rs. 3,500 to Rs. 5,000 per month.
Currently, the above proposals are in the form of a bill only.
Regards,
Anil Kaushik
Chief Editor, BUSINESS MANAGER
B-138, Ambedkar Nagar, Alwar-301001 (Rajasthan), India
Landline: 0144-2372022
Mobile: 09829133699
Email: bmalwar@yahoo.com
"YOUR TODAY'S PROBLEMS ARE YESTERDAY'S WRONG DECISIONS"
From India, Delhi
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181The Government of India, through the Payment of Bonus (Amendment) Bill-2010 (15 of 2010) published in the Gazette of India, proposes the following amendments:
1. To increase the minimum bonus limit from 8.33% to 11%.
2. To raise the wage ceiling of coverable employees from Rs. 10,000 to Rs. 15,000 per month.
3. To enhance the calculation of bonus from Rs. 3,500 to Rs. 5,000 per month.
Currently, the above proposals are in the form of a bill only.
Regards,
Anil Kaushik
Chief Editor, BUSINESS MANAGER
B-138, Ambedkar Nagar, Alwar-301001 (Rajasthan), India
Landline: 0144-2372022
Mobile: 09829133699
Email: bmalwar@yahoo.com
"YOUR TODAY'S PROBLEMS ARE YESTERDAY'S WRONG DECISIONS"
From India, Delhi
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Please reply to the following queries:
1. What is the minimum bonus limit, 8.33%? Is it calculated based on the basic wage or gross wage?
2. How can we enhance the bonus calculation from Rs. 3500/- to Rs. 5000/- per month? Please provide clarification on this matter.
From India, Moradabad
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1. What is the minimum bonus limit, 8.33%? Is it calculated based on the basic wage or gross wage?
2. How can we enhance the bonus calculation from Rs. 3500/- to Rs. 5000/- per month? Please provide clarification on this matter.
From India, Moradabad
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Dear Member,
Please go through section 2(21) of the Payment of Bonus Act, 1961 for the definition of wage or salary. In general, we are to consider Basic & DA. However, where an employee is given, in lieu of the whole or part of the salary or wage payable to him, free food allowance or free food by the employer, such food allowance or the value of such food shall, for the purposes of this clause, be deemed to form part of the salary or wage of the employee.
As already clarified by Mr. Anil Kaushik, this is only an amendment bill. Therefore, we should wait for some time.
With Regards,
R.N.Khola
Please reply to the following queries:
1. Is the minimum bonus limit 8.33%? Is it calculated on the basic wage or gross wage?
2. Can you provide clarification on enhancing the calculation of the bonus from Rs. 3500/- to 5000/- per month?
From India, Delhi
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Please go through section 2(21) of the Payment of Bonus Act, 1961 for the definition of wage or salary. In general, we are to consider Basic & DA. However, where an employee is given, in lieu of the whole or part of the salary or wage payable to him, free food allowance or free food by the employer, such food allowance or the value of such food shall, for the purposes of this clause, be deemed to form part of the salary or wage of the employee.
As already clarified by Mr. Anil Kaushik, this is only an amendment bill. Therefore, we should wait for some time.
With Regards,
R.N.Khola
Please reply to the following queries:
1. Is the minimum bonus limit 8.33%? Is it calculated on the basic wage or gross wage?
2. Can you provide clarification on enhancing the calculation of the bonus from Rs. 3500/- to 5000/- per month?
From India, Delhi
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Re: Govt. proposal to increase bonus to 11% - Business Manager - HR Magazine update
Dear Anil,
Good to see the upcoming amendment under the Payment of Bonus Act. Point 1 & 3 are excellent, whereby the percentage of the bonus limit and the calculated amount have to be increased to 11% and Rs. 5000 per month, respectively. However, Point 2, where the wage ceiling of coverable employees increases to Rs. 15000 per month, may not be viable. This is because many organizations currently pay ex-gratia to employees who are not covered under the Payment of Bonus Act, with the ex-gratia amount often exceeding the statutory bonus amount. As a result, employees who were previously not covered under the Act will now be covered, leading to a loss of the ex-gratia amount paid by the organizations.
Regards,
Himanshu Divecha
From India, Mumbai
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Dear Anil,
Good to see the upcoming amendment under the Payment of Bonus Act. Point 1 & 3 are excellent, whereby the percentage of the bonus limit and the calculated amount have to be increased to 11% and Rs. 5000 per month, respectively. However, Point 2, where the wage ceiling of coverable employees increases to Rs. 15000 per month, may not be viable. This is because many organizations currently pay ex-gratia to employees who are not covered under the Payment of Bonus Act, with the ex-gratia amount often exceeding the statutory bonus amount. As a result, employees who were previously not covered under the Act will now be covered, leading to a loss of the ex-gratia amount paid by the organizations.
Regards,
Himanshu Divecha
From India, Mumbai
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Dear Anil,
Ex gratia is not a guarantee; it may either be paid or not paid by organizations. If it is a bonus, it becomes statutory and is payable. Let the people be happy with the proposed new enactment.
K. Ramachandra
Bangalore
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Ex gratia is not a guarantee; it may either be paid or not paid by organizations. If it is a bonus, it becomes statutory and is payable. Let the people be happy with the proposed new enactment.
K. Ramachandra
Bangalore
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Dear Sir, Is there any changes in maximum limit of 20 % Kindly explore me and where we see the central govt gazettes...
From India, Pune
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From India, Pune
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Re: Govt. proposal to increase bonus to 11%- Business Manager Friends, The bill is yet to be passed. copy of introduced bill is enclosed. chandu1967
From India, Bangalore
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From India, Bangalore
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Dear All,
As already posted, a bill, when introduced in either of the Houses of Parliament, has to be passed by both Houses. It is then sent for Presidential assent and subsequently notified in the Gazette for it to come into effect. In the meantime, it can be referred to a Parliamentary Select Committee for detailed consideration. The bill must pass through these stages before it is notified, and discussions until then can be considered academic.
With Regards,
Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry
E-mail: rajanassociates@eth.net
Mobile: 9025792684-9025792634
From India, Bangalore
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As already posted, a bill, when introduced in either of the Houses of Parliament, has to be passed by both Houses. It is then sent for Presidential assent and subsequently notified in the Gazette for it to come into effect. In the meantime, it can be referred to a Parliamentary Select Committee for detailed consideration. The bill must pass through these stages before it is notified, and discussions until then can be considered academic.
With Regards,
Advocates & Notaries & Legal Consultants for Staffing & Recruiting Industry
E-mail: rajanassociates@eth.net
Mobile: 9025792684-9025792634
From India, Bangalore
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if this proposal will pass then it will effect from financial year 2009-10 or 2010-11. if we adopt this proposal then all employees Monthly CTC will effect. regds Ravi Dixit
From India, New Delhi
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From India, New Delhi
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Please note that it was not published in the Government Gazette as posted in this discussion. It is a private member bill, just like any other private member bill filed during the month of March 2010 in parliament. For amendment, it has to travel a long way!
From India, Madras
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From India, Madras
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