Payment of Bonus Amendment Act

The Payment of Bonus Act, 1965 has been amended vide Payment of Bonus Amendment Act, 2015 which received the assent of the President on 31st December, 2015 and gazetted the next day. There are two amendments i.e.

Section 2(13) – definition of employee amended to read as follows:

“employee” means any person (other than an apprentice) employed on a salary or wage not exceeding 1*[twenty one thousand rupees] per mensem 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 be express or implied;

The limits has been raised from Rs.10,000 to Rs.21000/-

Section 12 – calculation of bonus with respect to certain employees

[12. Calculation of bonus with respect to certain employees.- Where the salary or wage of an employee exceeds *[seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher] per mensem, 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 *[seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher] per mensem.]

An explanation has been added at the end of section 12 as follows:

Explanation.—For the purposes of this section, the expression ‘‘scheduled employment’’ shall have the same meaning as assigned to it in clause (g) of section 2 of the Minimum Wages Act, 1948.’.

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