Blogs
bonus act amendment

Bonus Act amendment – Ceiling raised to Rs.21,000

January 19, 2016

Latest update on Bonus

In one of our previous blogs, we have seen that a bill was proposed to bring changes in the Bonus Act to raise the ceiling from the current existing Rs. 10,000. 

This has now been implemented, according to a recent notification from the Ministry of Labour. 

According to this notification,  the bonus ceiling is now raised to Rs. 21,000. Accordingly, the calculation ceiling has also been raised from Rs. 3,500 to Rs. 7,000.

This means all employees whose salary is less than Rs. 21,000 per month fall under the criteria of bonus. If the salary of an employee exceeds Rs. 7,000, then bonus should be calculated on Rs. 7,000 only. If the salary of an employee is less than Rs. 7,000, then the bonus is to be calculated on the actual amount.

The bonus calculation is Rs. 7,000 or the minimum wages as specified by the government, whichever is higher.

This will be applicable from 1st of April, 2014. 

Part-time employees can also be considered for calculation of bonus

This Bonus Act is applicable to every establishment which has over 20 employees on any given day, in an accounting year.

The conditions which are to be satisfied for the payment of Bonus are:

  • An employee has to have worked for at least 30 days in that company.
  • According to the Bonus Act, a minimum of 8.33% up to 20% of his basic (earned) wages is to be paid to the employee. 

Note: Bonus is to be paid within 8 months of closing the book of accounts.

 

Share On:

12 Responses to “Bonus Act amendment – Ceiling raised to Rs.21,000”

  1. Adv. Punit Kumar

    Whether the increased ceiling of Bonus has been opposed? As such it has come to my knowledge that the Bonus for the financial year 2014-15 is to be enhanced only after Court’s order.

  2. AJITHA BABU

    Sir.

    As per the AIOE Application filed against this notification to Union Minister of State ( Hon’ble Shri Bandaru
    Dattatreya) meioned that the companies have closed their account ooks for the year 2014-2015 on 31st March,2015.
    Now re-opening the account books and enhancing the amount of bonus. so they want amendment of Bonus act with propsective effort
    ie, from the financial year 2015-16.
    As per the Gazette notification showing with effect from 1st april 2014. is it correct and we hope we will get the
    balance amount of bonus Rs. 3500/- is it true. we will get the same or not . please reply.

  3. rajendra nath bhowmick

    my basic salary+DA=19862 and welfare is near about 6000, may i eligible for full bonus under bonus amendment act 2015? Kindly reply me. Thanks.

  4. RAJENDRA NATH BHOWMICK

    PLEASE BREAKUP THE MINIMUM WAGE LIMIT OF RS. 21000/- OF BONUS ACT 2015.

  5. Gatane b n

    Dear sir,
    if my basic is 25000 p.m. how bonus will be calculated for f.y 2016-17.
    pls.guide.

  6. s c tiwari

    i am a principle employer. I have awarded job contracts to two contractors. Each contractor has engaged some manpower (15 labours and 10 labours).
    With above, for me, total engaged labours are 25 nos in my establishment.
    As per Act, is bonus applicable and compulsory? None of the contractors has deployed more than 20 workers. Pl guide

    • relyonsoft

      Sir, as these labors are not on your permanent payroll, you will not be applicable to pay the bonus to such labours.

  7. Pradip parekh

    Please I want to know about bonus act because of recently any changes or amended in bonus act in Gujarat for labour / worker ???? Please reply me as early as possible. Thanks

Ease Your Payroll Process

Relyon Featured Products

Complete Payroll solution right from attendance punch to generation of Payslip.

  • * Flexible salary and attendance creation.
  • * Powerful Statutory compliance.
  • * Employee Self Service.
  • * Extensive Reporting Formats.
  • * Exit Management.
Know More    Request a Demo


Categories

Featured Posts

Tag Clouds