Tuesday, November 20, 2007

Amendment to Bonus Act 1965

Amendment to the payment of Bonus act, 1965
The Cabinet in its meeting held on October, 1, 2007 has approved the Amendments to the payment of Bonus Act, 1965, which are as follows:
i) Amendment to Section 2 (13): To raise the eligibility limit for payment of bonus from the salary or wage of Rs.3500/- to Rs. 10,000 per month.
ii) Amendment to Section 12: To raise the ceiling for calculation purpose from the salary of wage of Rs.2500/- to Rs.3500/- per month, and:
iii) Deletion of Section 32 (vi): To cover the employees employed through contractors on building operations.
PRESS NOTE
On 27th October 2007 the President has promulgated the Payment of Bonus (Amendment) Ordininance, 2007 containing the following amendments: -
i) Amendment to clause (13) of Section 2 of the Payment of Bonus Act, 1965 to raise the eligibility limit for payment of bonus from the salary or wage of Rs.3500/- per month to Rs.10, 000/- month.
ii) Amendment to Section 12 of the Payment of Bonus Act, 1965 to raise the ceiling for calculation purpose from the salary or wage of Rs.2500/- per month to Rs.3500/- per month;
iii) Deletion of clause (vi) of section 32 of the Payment of Bonus Act, 1965 so as to cover the employees employed through contractors on building operations.
Thus the employees, including those employed through contractors on building operations will be entitled to receive bonus as per the revised ceilings, for the year 2006-07 and onwards.
The Ordinance shall be deemed to have come into force on 1st April 2006.
Ministry of Labour & Employment, New Delhi, Kartika 07, 1929 / October 29, 2007.

No comments: