Dear All,
As per the recent amendment to the Bonus Act of 1965, the minimum rate of bonus has been increased from 8.33% to 11%. What will happen if a company does not adhere to this act? What are the consequences?
Regards,
Ashish Banka
From India, Calcutta
11As per the recent amendment to the Bonus Act of 1965, the minimum rate of bonus has been increased from 8.33% to 11%. What will happen if a company does not adhere to this act? What are the consequences?
Regards,
Ashish Banka
From India, Calcutta
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First of all, the amendment is in the form of a bill only as it has not been passed by the parliament, so the question of its implementation is uncertain as of now.
Not following the changes once it becomes a law is an offense and punishable under the law.
From India, Pune
Not following the changes once it becomes a law is an offense and punishable under the law.
From India, Pune
Dear Kamal, I am giving an attachment with reflects that the bill has been implemented regards ashish
From India, Calcutta
From India, Calcutta
The Payment of Bonus (Amendment) Bill, 2010 by Khushi Mehta — last modified Nov 12, 2010 12:46 PM
The Payment of Bonus Act, 1965 is the principal act for the payment of bonus to employees, which was formed with an objective of rewarding employees for their good work for the organization. It is a step forward to share the prosperity of the establishment reflected by the profits earned by the contributions made by capital, management, and labor with the employees. Recently, a Bill has been drafted for further amendment of the Act. This may be enacted by Parliament in the Sixty-first Year of the Republic of India. The Act may be called the Payment of Bonus (Amendment) Act, 2010, and it shall come into force on such date that the Central Government may notify by the Official Gazette appointed.
Amendments that are proposed are as follows: (Please note that the bill is yet to be placed in the Parliament)
Amendment in Section 2 of the Act: It is proposed to make an amendment in Section 2 clause 13, which defines "employee" and who can be covered under the Act. "Employee" means any person (other than an apprentice) employed on a salary or wage not exceeding ten thousand rupees per month in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical, or clerical work for hire or reward, whether the terms of employment are express or implied.
Amendment in Section 10 of the Act: Section 10 is known as "Payment of minimum bonus" and provides details regarding the minimum amount of payable bonus to eligible employees. As per the proposed amendment, subject to the other provisions of the Act, "every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 2009 and in respect of every subsequent accounting year, a minimum bonus which shall be 11 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Provided that if an employee has not reached fifteen years of age at the beginning of the accounting year, the provision of this section shall have effect on such employee as if for the words "one hundred rupees," the words "sixty rupees" were substituted." Earlier, the minimum bonus was equivalent to 8.33 percent of the salary or wage earned by the employee during the year.
Amendment in Section 12 of the Act: Section 12 refers to "Calculation of bonus with respect to certain employees" under which previously when the salary or wage of an employee exceeded five thousand rupees per month, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were five thousand rupees per month. But now it is proposed to substitute the words "five thousand rupees" for "three thousand and five hundred rupees."
The amendment Bill is introduced to meet the high rate of inflation and provide support to employees by changing the definition of employees who will be eligible for coverage under the Payment of Bonus Act.
- Prof. Biju Varkkey and Ms. Shailja Tripathi (views expressed in the article are those of the authors)
From India, Calcutta
The Payment of Bonus Act, 1965 is the principal act for the payment of bonus to employees, which was formed with an objective of rewarding employees for their good work for the organization. It is a step forward to share the prosperity of the establishment reflected by the profits earned by the contributions made by capital, management, and labor with the employees. Recently, a Bill has been drafted for further amendment of the Act. This may be enacted by Parliament in the Sixty-first Year of the Republic of India. The Act may be called the Payment of Bonus (Amendment) Act, 2010, and it shall come into force on such date that the Central Government may notify by the Official Gazette appointed.
Amendments that are proposed are as follows: (Please note that the bill is yet to be placed in the Parliament)
Amendment in Section 2 of the Act: It is proposed to make an amendment in Section 2 clause 13, which defines "employee" and who can be covered under the Act. "Employee" means any person (other than an apprentice) employed on a salary or wage not exceeding ten thousand rupees per month in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical, or clerical work for hire or reward, whether the terms of employment are express or implied.
Amendment in Section 10 of the Act: Section 10 is known as "Payment of minimum bonus" and provides details regarding the minimum amount of payable bonus to eligible employees. As per the proposed amendment, subject to the other provisions of the Act, "every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 2009 and in respect of every subsequent accounting year, a minimum bonus which shall be 11 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Provided that if an employee has not reached fifteen years of age at the beginning of the accounting year, the provision of this section shall have effect on such employee as if for the words "one hundred rupees," the words "sixty rupees" were substituted." Earlier, the minimum bonus was equivalent to 8.33 percent of the salary or wage earned by the employee during the year.
Amendment in Section 12 of the Act: Section 12 refers to "Calculation of bonus with respect to certain employees" under which previously when the salary or wage of an employee exceeded five thousand rupees per month, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were five thousand rupees per month. But now it is proposed to substitute the words "five thousand rupees" for "three thousand and five hundred rupees."
The amendment Bill is introduced to meet the high rate of inflation and provide support to employees by changing the definition of employees who will be eligible for coverage under the Payment of Bonus Act.
- Prof. Biju Varkkey and Ms. Shailja Tripathi (views expressed in the article are those of the authors)
From India, Calcutta
Dear Ashish,
Try to understand the first paragraph (The Payment of Bonus (Amendment) Bill, 2010) posted by you. It clearly mentions, "This may be enacted by Parliament in the Sixty-first Year of the Republic of India. The Act may be called the Payment of Bonus (Amendment) Act, 2010, and it shall come into force on such date that the Central Government may notify by the Official Gazette."
Where does it state that the bill is passed and already implemented? Make a serious effort on your own to understand the details, don't just provide an overview. Your casual approach will not benefit you in any way.
The amendment bill has not been passed by the parliament to date. Once the bill is passed by both houses of parliament, the government will notify the amendment along with the implementation date in the Official Gazette. You also need to understand the constitutional procedure to amend an Act.
-Kamal
From India, Pune
Try to understand the first paragraph (The Payment of Bonus (Amendment) Bill, 2010) posted by you. It clearly mentions, "This may be enacted by Parliament in the Sixty-first Year of the Republic of India. The Act may be called the Payment of Bonus (Amendment) Act, 2010, and it shall come into force on such date that the Central Government may notify by the Official Gazette."
Where does it state that the bill is passed and already implemented? Make a serious effort on your own to understand the details, don't just provide an overview. Your casual approach will not benefit you in any way.
The amendment bill has not been passed by the parliament to date. Once the bill is passed by both houses of parliament, the government will notify the amendment along with the implementation date in the Official Gazette. You also need to understand the constitutional procedure to amend an Act.
-Kamal
From India, Pune
Dear Kamal, The above act is already passes with Bill ni 15 of 2010 By Gazette of India, 5-3-2010,pt II-SII Ext P.59(No.3) I have a printed copy of it but not in my computer regards ashish
From India, Calcutta
From India, Calcutta
Dear Asish,
I am attaching the document you are referring to. Don't be confused again. It is clearly mentioned as "[COLOR="Red"]be it enacted[/COLOR]". "Be enacted" means it did not get enacted. Then how can you say that the bill is passed? It is also mentioned in the document [COLOR="red"]"It shall come into force on such date as the Central Govt may, by notification in the Official Gazette, appoint."[/COLOR] This document is a notification of the Govt. regarding the proposed amendment. As of today, there is no change. If the Bill is passed by both Houses of Parliament, it will require Presidential assent and thereafter the Govt. will notify in the official gazette about its implementation. Read and understand the document properly.
-Kamal Prasoon
From India, Pune
I am attaching the document you are referring to. Don't be confused again. It is clearly mentioned as "[COLOR="Red"]be it enacted[/COLOR]". "Be enacted" means it did not get enacted. Then how can you say that the bill is passed? It is also mentioned in the document [COLOR="red"]"It shall come into force on such date as the Central Govt may, by notification in the Official Gazette, appoint."[/COLOR] This document is a notification of the Govt. regarding the proposed amendment. As of today, there is no change. If the Bill is passed by both Houses of Parliament, it will require Presidential assent and thereafter the Govt. will notify in the official gazette about its implementation. Read and understand the document properly.
-Kamal Prasoon
From India, Pune
Dear Ashish, Please find the attachment.This may help you to clear your doubt.
From India, Bangalore
From India, Bangalore
Can any one guide me, what is a present max slab, it is 3500 or 10000. kindly let me know.
From India, Bangalore
From India, Bangalore
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