Hi Sir, I worked in a public limited company for more than 10 years and I resigned from there in the month of JUNE 2022.
Normally the company used to give festival bonus for the resigned persons also if they worked in the previous financial year
But in my case when I approached for a bonus, HR informed me that there is some new amendment notification of the bonus act has implemented by the Govt, states that the person who resigned from services will not get a bonus if their Basic + DA, is more than Rs.7000 per month because of this reason I will not get bonus my BASIC +DA is Rs.15000.I searched in google also, but couldn't find any new amendment notification of Bonus act. I have asked the employer also to share the notification but no response
Please clarify if anything like that
From India, Chennai
Normally the company used to give festival bonus for the resigned persons also if they worked in the previous financial year
But in my case when I approached for a bonus, HR informed me that there is some new amendment notification of the bonus act has implemented by the Govt, states that the person who resigned from services will not get a bonus if their Basic + DA, is more than Rs.7000 per month because of this reason I will not get bonus my BASIC +DA is Rs.15000.I searched in google also, but couldn't find any new amendment notification of Bonus act. I have asked the employer also to share the notification but no response
Please clarify if anything like that
From India, Chennai
Dear Malarvizhi,
Your mention that the due was " festival bonus " is a little bit confusing. It is not clear whether you have mentioned so because of the fact that it is the general practice that statutory bonus is disbursed during Deepavali festival every year or that the " festival bonus " mentioned is an additional amount paid over and above the statutory bonus.
If it is statutory bonus, the statement of the HR is not correct. The amendment he refers to is about section 12 of the Payment of Bonus Act,1965 which restricts the amount of monthly salary of an eligible employee that should be taken into account for the purpose of calculation of bonus under the Act and not about the eligibility of any serving employee or resigned employee with reference to his/her monthly salary. To put it simple, before the 2015 amendment, section 12 of the Act fixed the ceiling on the monthly salary for the purpose of bonus calculation as Rs.3500/- when the employee's salary was more than Rs.3500/- per month. This has been raised now to Rs 7000/- pm. In other words, when the monthly salary becomes more than Rs.7000/-, it should be treated as Rs.7000/- or the minimum wages payable under the Minimum Wages Act,1948 whichever is higher.
The notification of the amendment is available on the Net; just google and get it.
From India, Salem
6018Your mention that the due was " festival bonus " is a little bit confusing. It is not clear whether you have mentioned so because of the fact that it is the general practice that statutory bonus is disbursed during Deepavali festival every year or that the " festival bonus " mentioned is an additional amount paid over and above the statutory bonus.
If it is statutory bonus, the statement of the HR is not correct. The amendment he refers to is about section 12 of the Payment of Bonus Act,1965 which restricts the amount of monthly salary of an eligible employee that should be taken into account for the purpose of calculation of bonus under the Act and not about the eligibility of any serving employee or resigned employee with reference to his/her monthly salary. To put it simple, before the 2015 amendment, section 12 of the Act fixed the ceiling on the monthly salary for the purpose of bonus calculation as Rs.3500/- when the employee's salary was more than Rs.3500/- per month. This has been raised now to Rs 7000/- pm. In other words, when the monthly salary becomes more than Rs.7000/-, it should be treated as Rs.7000/- or the minimum wages payable under the Minimum Wages Act,1948 whichever is higher.
The notification of the amendment is available on the Net; just google and get it.
From India, Salem
Really much disappointed to see your situation and more horrible to see that this kind of job is done by an HR person. this small small steps make an unhealhty atmosphere in company . i dont understand that why people do this ? may be they want to show their KRA to their management that they have saved lot of money and want to be promoted . but its a totaly wrong practice as humanity and as professional .
as per amendment of Payment of bonus act -
2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the principal Act), in clause (13), for the words ‘‘ten thousand rupees’’, the words ‘‘twenty-one
thousand rupees’’ shall be substituted.
it means the wages limit has been revised from Rs.10,000/- to Rs.21,000/- for bonus eligibility.
3. In section 12 of the principal Act,—
(i) for the words ‘‘three thousand and five hundred rupees’’ at both the places where they occur, the words ‘‘seven thousand rupees or the minimum wage for the
scheduled employment, as fixed by the appropriate Government, whichever is higher’’ shall respectively be substituted;
it means minimum bonus is revised from Rs.3500/- to minimum wages or Rs. 7000/- whichever is higher .
From India, Rudarpur
as per amendment of Payment of bonus act -
2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the principal Act), in clause (13), for the words ‘‘ten thousand rupees’’, the words ‘‘twenty-one
thousand rupees’’ shall be substituted.
it means the wages limit has been revised from Rs.10,000/- to Rs.21,000/- for bonus eligibility.
3. In section 12 of the principal Act,—
(i) for the words ‘‘three thousand and five hundred rupees’’ at both the places where they occur, the words ‘‘seven thousand rupees or the minimum wage for the
scheduled employment, as fixed by the appropriate Government, whichever is higher’’ shall respectively be substituted;
it means minimum bonus is revised from Rs.3500/- to minimum wages or Rs. 7000/- whichever is higher .
From India, Rudarpur
Dear friend
You are entitle to get full year bonus for the year 2021-22 and two months service of 2022-23(ie May and June 22).bonus limit is 21000/- Basic plus DA WHEREAS
your basic is 15000 only .whatever they have mentioned is for getting minimum bonus,if some one basic is 6000 than he is entitled to get 7000 which is minimum bonus but your basic is 15000 so you will get bonus on 15000
From India, Delhi
You are entitle to get full year bonus for the year 2021-22 and two months service of 2022-23(ie May and June 22).bonus limit is 21000/- Basic plus DA WHEREAS
your basic is 15000 only .whatever they have mentioned is for getting minimum bonus,if some one basic is 6000 than he is entitled to get 7000 which is minimum bonus but your basic is 15000 so you will get bonus on 15000
From India, Delhi
One correction to Ummakantha's post above.
The limit is not ₹ 7,000 but ₹ 7,000 or minimum wages whichever lower.
Since the minimum wages has exceeded ₹ 7,000 in most cases, you need to refer to the latest minimum wages notification.
To clarify, if your basic + Da is less than ₹ 21,000 a month, you are eligible to Bonus. Only you will get it at ceiling and not your actual wage rate. You need to tell the HR that his working is wrong (please copy the section from the act and show him).
If he does not agree, then you will need to file a compliant with the labour commissioner of the concerned city.
From India, Mumbai
The limit is not ₹ 7,000 but ₹ 7,000 or minimum wages whichever lower.
Since the minimum wages has exceeded ₹ 7,000 in most cases, you need to refer to the latest minimum wages notification.
To clarify, if your basic + Da is less than ₹ 21,000 a month, you are eligible to Bonus. Only you will get it at ceiling and not your actual wage rate. You need to tell the HR that his working is wrong (please copy the section from the act and show him).
If he does not agree, then you will need to file a compliant with the labour commissioner of the concerned city.
From India, Mumbai
Dear Saswat,
The statutory alternative to the monthly notional salary limit u/s 12 of the PB Act,1965, as per the 2015 amendment with reference to the statutory minimum wages, if any, fixed for the employment is only HIGHER in proportion, not lower. Please check once again.
From India, Salem
The statutory alternative to the monthly notional salary limit u/s 12 of the PB Act,1965, as per the 2015 amendment with reference to the statutory minimum wages, if any, fixed for the employment is only HIGHER in proportion, not lower. Please check once again.
From India, Salem
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Bonus act amendment gazette copy.pdf
THE PAYMENT OF BONUS ACT.doc