Dear Friends,
Hi everyone, since this is my first article in the Forum. I do not agree with Mr. Umakanthan53. What I understood from the revised Bonus Act is as follows:
1. If the MW is less than ₹7,000/- per month, it is considered as ₹7,000 for bonus calculation, and ₹7,000 is to be paid as the minimum bonus.
2. If MW is up to ₹21,000/- per month, calculate the bonus at 8.33% of MW.
3. If anyone draws MW greater than or equal to ₹21,000/- per month, then he/she is not entitled to a bonus.
However, the entire matter is pending with the Honorable High Courts of different states to decide from which date the above revised bonus is applicable. On June 13, 2016, the Honorable Bombay High Court granted a stay throughout India against WPL No.1548-16. Kindly update if the above stay is vacated and a specific direction is given on the issue.
Mr. Umakanthan53, if you do not agree with me, please correct me. Regards to every participant on the subject.
From India, Thane
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23Hi everyone, since this is my first article in the Forum. I do not agree with Mr. Umakanthan53. What I understood from the revised Bonus Act is as follows:
1. If the MW is less than ₹7,000/- per month, it is considered as ₹7,000 for bonus calculation, and ₹7,000 is to be paid as the minimum bonus.
2. If MW is up to ₹21,000/- per month, calculate the bonus at 8.33% of MW.
3. If anyone draws MW greater than or equal to ₹21,000/- per month, then he/she is not entitled to a bonus.
However, the entire matter is pending with the Honorable High Courts of different states to decide from which date the above revised bonus is applicable. On June 13, 2016, the Honorable Bombay High Court granted a stay throughout India against WPL No.1548-16. Kindly update if the above stay is vacated and a specific direction is given on the issue.
Mr. Umakanthan53, if you do not agree with me, please correct me. Regards to every participant on the subject.
From India, Thane
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Dear Mr. PL Kanthan Ji,
I have also confirmed and understood as you narrated on the given points (mentioned in your submission):
1) This is okay and meaningful/justified under the provisions of the New Revision as construed. (Rs. 7000 is to be paid as a minimum bonus).
2) The threshold limit of Rs. 21,000 salary is defined, but the percentage of paying the bonus is not defined as you suggested. It is at the management's discretion to declare, and the calculation will be based on earnings of a particular month. It is not binding on the Minimum Wage or Rs. 7000/-. One can try to escape from liability only through calculation on Minimum Wage/Rs. 7000.
3) If any person's gross earnings are equivalent to Rs. 21,000, they are entitled to a bonus. If exceeding Rs. 21,000, they are not entitled and may not claim from the employer legally.
4) Stay is only granted for the effective date of FY 2014-15. We have to pay it for FY 2015-16.
Thank you.
From India
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I have also confirmed and understood as you narrated on the given points (mentioned in your submission):
1) This is okay and meaningful/justified under the provisions of the New Revision as construed. (Rs. 7000 is to be paid as a minimum bonus).
2) The threshold limit of Rs. 21,000 salary is defined, but the percentage of paying the bonus is not defined as you suggested. It is at the management's discretion to declare, and the calculation will be based on earnings of a particular month. It is not binding on the Minimum Wage or Rs. 7000/-. One can try to escape from liability only through calculation on Minimum Wage/Rs. 7000.
3) If any person's gross earnings are equivalent to Rs. 21,000, they are entitled to a bonus. If exceeding Rs. 21,000, they are not entitled and may not claim from the employer legally.
4) Stay is only granted for the effective date of FY 2014-15. We have to pay it for FY 2015-16.
Thank you.
From India
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Dear Mr. Rajesh Kumar Dubey,
If you look at 3.(i) of Gazette Notification Payment of Bonus - Amendment - Act, 2015 (No. 6 of 2016) dated 1.1.2016 by Ministry of Law & Justice, it reads as -
Quote
In section 12 of the principal Act, -
"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."
Unquote
When we talk about minimum wages, it includes Basic+DA+regular cash allowances (in any form). So, if anybody's earning in the above form is less than Rs. 7000 per month, then it is to be construed as Rs. 7000 per month for the purpose of calculating bonus.
Now for the period - Court stay is for section 1, sub-clause (2) of the Act. The Hon. High Court also ruled that "In the meantime, retrospective application of the said act is stayed, and no coercive steps shall be taken against the .... for recovery of the amounts due prior to '31st March 2016'."
This virtually puts a stay till 31.3.2016.
Waiting for the Hon. Courts to pass a ruling.
From India, Thane
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If you look at 3.(i) of Gazette Notification Payment of Bonus - Amendment - Act, 2015 (No. 6 of 2016) dated 1.1.2016 by Ministry of Law & Justice, it reads as -
Quote
In section 12 of the principal Act, -
"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."
Unquote
When we talk about minimum wages, it includes Basic+DA+regular cash allowances (in any form). So, if anybody's earning in the above form is less than Rs. 7000 per month, then it is to be construed as Rs. 7000 per month for the purpose of calculating bonus.
Now for the period - Court stay is for section 1, sub-clause (2) of the Act. The Hon. High Court also ruled that "In the meantime, retrospective application of the said act is stayed, and no coercive steps shall be taken against the .... for recovery of the amounts due prior to '31st March 2016'."
This virtually puts a stay till 31.3.2016.
Waiting for the Hon. Courts to pass a ruling.
From India, Thane
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I am not able to find any difference between the analysis of the effects of the latest amendment in my previous post and the views expressed by Mr. P.L. Kanthan in his posts other than the sentence patterns. I shall be much obliged if he is kind enough to specifically point out on which part of my response he is in disagreement.
From India, Salem
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From India, Salem
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf