Oct 3, 2007

Amendment of Bonus

The Indian Central Govt. has decided to amend payment of bonus act which would make workers drawing upto 10,000 salary per month eligible for annual bonus. Till now only workers drawing upto 3500/- salary were eligible for bonus.

The Government is likely to issue the ordinance to amend section 12 of payment of wages act. The current celling of 3500/- for bonus was fixed in April 1995. The bonus celling had been fixed at 1600/- in 1965 which was raised to 2500/- in 1985 and 3500/- in 1995 by ameding section 2 (13) of the payment of bonus act.

Construction workers even if they have worked for a month with builder companies or contractors would also be eligible to get proportionate bonus from employer.