Dear all,
Could you kindly let me know where I can find the official link for the latest version of the Payment of Bonus Act? I have come across the following links, but based on several posts in the forums, I have a feeling that these may not be the most recent. I have noticed some attachments in certain threads, but I am particularly interested in the official source.
- http://labour.nic.in *[link fixed]*
- http://lc.kerala.gov.in/images/Cact/pbact.pdf
Note: Links for any related proposed bills that are currently in progress would also be greatly appreciated.
Regards,
Krishna.
From India, Kannur
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1Could you kindly let me know where I can find the official link for the latest version of the Payment of Bonus Act? I have come across the following links, but based on several posts in the forums, I have a feeling that these may not be the most recent. I have noticed some attachments in certain threads, but I am particularly interested in the official source.
- http://labour.nic.in *[link fixed]*
- http://lc.kerala.gov.in/images/Cact/pbact.pdf
Note: Links for any related proposed bills that are currently in progress would also be greatly appreciated.
Regards,
Krishna.
From India, Kannur
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Hi,
I could find a copy of the 2007 amendment through the following website: CENTRAL ACTS. However, I am still looking for a more reliable source where the latest information is always available.
Regards,
Krishna.
From India, Kannur
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I could find a copy of the 2007 amendment through the following website: CENTRAL ACTS. However, I am still looking for a more reliable source where the latest information is always available.
Regards,
Krishna.
From India, Kannur
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It is well available in Kannur itself. Go to a Law book shop and buy a bare Act published by Universal.It cost only Rs 35.
From India, Kochi
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From India, Kochi
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Our local labor officers say the following about bonuses:
- The minimum bonus is 8.33% of the annual gross salary, basically equivalent to one month's salary unless a person has Loss of Pay (LOP) leaves.
- The maximum bonus is 20% of the annual gross salary.
- A person should have completed one year in the organization to be eligible for a bonus.
They suggest that ideally, an institution should set aside a "certain" percentage amount and distribute it as a bonus. However, since it is not practical, the general practice is as described above.
They also mention that there is a difference in consideration between government employees and those who work in private firms. Unfortunately, I don't have more details on this.
Additionally, they mention that online versions might not be up to date, and what they say is well-documented. Apparently, when our manager visited their office, they showed a 500+ page book that had all the details mentioned above.
Lastly, in Kerala, it is a common practice to give bonuses in August, and the calculation is done for the year from August to July.
However, based on various discussions I have observed in this forum:
- The minimum bonus is 8.33%, but with a cap of Rs. 3,500 per month.
- A person who has completed 30 days is eligible for a bonus.
- Bonus calculations should strictly align with the financial year concept.
Kindly help me clear up this confusion. Thanks in advance.
From India, Kannur
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- The minimum bonus is 8.33% of the annual gross salary, basically equivalent to one month's salary unless a person has Loss of Pay (LOP) leaves.
- The maximum bonus is 20% of the annual gross salary.
- A person should have completed one year in the organization to be eligible for a bonus.
They suggest that ideally, an institution should set aside a "certain" percentage amount and distribute it as a bonus. However, since it is not practical, the general practice is as described above.
They also mention that there is a difference in consideration between government employees and those who work in private firms. Unfortunately, I don't have more details on this.
Additionally, they mention that online versions might not be up to date, and what they say is well-documented. Apparently, when our manager visited their office, they showed a 500+ page book that had all the details mentioned above.
Lastly, in Kerala, it is a common practice to give bonuses in August, and the calculation is done for the year from August to July.
However, based on various discussions I have observed in this forum:
- The minimum bonus is 8.33%, but with a cap of Rs. 3,500 per month.
- A person who has completed 30 days is eligible for a bonus.
- Bonus calculations should strictly align with the financial year concept.
Kindly help me clear up this confusion. Thanks in advance.
From India, Kannur
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Dear Krishna Shastri,
Section 8 of the Payment of Bonus Act is as follows:
Eligibility of Bonus - every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than 30 working days in that year.
Section 10 states that the employer has to pay to his employee in the subsequent accounting year a minimum bonus of 8.33% of wages, whereas section 11 states that the maximum bonus should be 20% of wages.
An employee whose salary does not exceed Rs. 10,000 per month is eligible to receive a bonus. Where the salary or wage of an employee exceeds Rs. 3,500 per month, the bonus payable to such an employee shall be calculated as if his salary or wage were Rs. 3,500 (See section 12 of the Act).
Section 12 - Calculation of bonus with respect to certain employees - Where the salary or wage of an employee exceeds Rs. 3,500 per month, the bonus payable to such an employee under Sec. 10, or as the case may be, under Sec. 11, shall be calculated as if his salary or wage were Rs. 3,500 per month.
This means if the wage of the employees exceeds Rs. 3,500, then the wages to be calculated for the bonus are to be taken as Rs. 3,500 only.
Furthermore, Section 19 is as follows:
Section 19 - Time-limit for payment of bonus
(a) Where there is a dispute regarding the payment of the bonus pending before any authority under Sec. 22, within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute;
(b) In any other case, within a period of eight months from the close of the accounting year.
Also, see the definition of the accounting year in section 2(1).
Section 2(1) "Accounting year" means -
(i) In relation to a corporation, the year ending on the day on which the books and accounts of the corporation are to be closed and balanced;
(ii) In relation to a company, the period in respect of which any profit and loss account of the company laid before it in the annual general meeting is made up, whether that period is a year or not; (iii) In any other case -
(a) The year commencing on the 1st day of April; or
(b) If the accounts of an establishment maintained by the employer thereof are closed and balanced on any day other than the 31st day of March, then, at the option of the employer, the year ending on the day on which its accounts are so closed and balanced.
Provided that an option once exercised by the employer under para. (b) of this sub-clause shall not again be exercised except with the previous permission in writing of the prescribed authority and upon such conditions as that authority may think fit.
Therefore, the bonus has to be paid within 8 months from the date of closure of the accounting year. The accounting year is to be decided according to the above said definition of the accounting year.
Note: The sections I have mentioned are as per the latest amendment till December 2011.
From India, Kochi
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Section 8 of the Payment of Bonus Act is as follows:
Eligibility of Bonus - every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than 30 working days in that year.
Section 10 states that the employer has to pay to his employee in the subsequent accounting year a minimum bonus of 8.33% of wages, whereas section 11 states that the maximum bonus should be 20% of wages.
An employee whose salary does not exceed Rs. 10,000 per month is eligible to receive a bonus. Where the salary or wage of an employee exceeds Rs. 3,500 per month, the bonus payable to such an employee shall be calculated as if his salary or wage were Rs. 3,500 (See section 12 of the Act).
Section 12 - Calculation of bonus with respect to certain employees - Where the salary or wage of an employee exceeds Rs. 3,500 per month, the bonus payable to such an employee under Sec. 10, or as the case may be, under Sec. 11, shall be calculated as if his salary or wage were Rs. 3,500 per month.
This means if the wage of the employees exceeds Rs. 3,500, then the wages to be calculated for the bonus are to be taken as Rs. 3,500 only.
Furthermore, Section 19 is as follows:
Section 19 - Time-limit for payment of bonus
(a) Where there is a dispute regarding the payment of the bonus pending before any authority under Sec. 22, within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute;
(b) In any other case, within a period of eight months from the close of the accounting year.
Also, see the definition of the accounting year in section 2(1).
Section 2(1) "Accounting year" means -
(i) In relation to a corporation, the year ending on the day on which the books and accounts of the corporation are to be closed and balanced;
(ii) In relation to a company, the period in respect of which any profit and loss account of the company laid before it in the annual general meeting is made up, whether that period is a year or not; (iii) In any other case -
(a) The year commencing on the 1st day of April; or
(b) If the accounts of an establishment maintained by the employer thereof are closed and balanced on any day other than the 31st day of March, then, at the option of the employer, the year ending on the day on which its accounts are so closed and balanced.
Provided that an option once exercised by the employer under para. (b) of this sub-clause shall not again be exercised except with the previous permission in writing of the prescribed authority and upon such conditions as that authority may think fit.
Therefore, the bonus has to be paid within 8 months from the date of closure of the accounting year. The accounting year is to be decided according to the above said definition of the accounting year.
Note: The sections I have mentioned are as per the latest amendment till December 2011.
From India, Kochi
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Hi Mehrunisa,
Could you kindly send me the link for the latest version? Apart from buying the physical book, I would like to have an online link to the official source, if possible.
In any case, what I see is that there are several differences between practical reality and what is written in the Act. Even the local labor officers are saying something different from what is quoted above.
Apparently, the last time our manager met them, they showed some book where all that is written. I will try to visit them myself and see which reference they are talking about.
Regards,
Krishna.
From India, Kannur
Acknowledge(0)Amend(0)
Could you kindly send me the link for the latest version? Apart from buying the physical book, I would like to have an online link to the official source, if possible.
In any case, what I see is that there are several differences between practical reality and what is written in the Act. Even the local labor officers are saying something different from what is quoted above.
Apparently, the last time our manager met them, they showed some book where all that is written. I will try to visit them myself and see which reference they are talking about.
Regards,
Krishna.
From India, Kannur
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