The Payment of Bonus (Amendment) Act, 2015 received the assent of the President on 31st December 2015. Amendments made to the Payment of Bonus Act, 1965 are as follows:
- The salary eligibility limit for coverage of employee under the Payment of Bonus Act, 1965 has been increased from INR 10,000 per month to INR 21,000 per month. Post the amendment, the term “employee” as defined under the Payment of Bonus Act, 1965, inter alia, means a person (other than apprentice) employed on salary or wage not exceeding INR 21,000 per month.
- The salary ceiling limit for calculation of bonus has been increased from INR 3,500 per month to INR 7,000 per month or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher. Post the amendment, where an employee’s salary is more than INR 7,000 per month or such minimum wage (whichever is higher), for the purposes of calculation of bonus, the salary will be assumed to be INR 7,000 per month or such minimum wage, whichever is higher.
The above mentioned amendments shall be deemed to have come into force on 1st April 2014.