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Friday, January 08, 2016

Detail Explanation on the Ammended Bonus Act 2015

Dear all,

As per various email & phone calls are recd at our office in regards to interpret the new clause as inserted in the Bonus act Amended 2015



3. In section 12 of the principal Act,— (i) for the words ‘‘three thousand and five hundred rupees’’ at both the places where they occur, the words ‘‘seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher’’ shall respectively be substituted


Here with example we will explain the new calculation how the bonus is to be calculated with the new amendment in Section 12 of the Principal Act  

Old Section 

2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the principal Act), in clause (13), for the words “three thousand and five hundred rupees”, the words “ten thousand rupees” shall be substituted. 3. In section 12 of the principal Act, for the words “two thousand and five hundred rupees”, at both the places where they occur, the words “three thousand and five hundred rupees” shall respectively be substituted

Here very directly we use to calculate in a very easy method & pay Rs 3500/-

Bust in the new changes the words or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher’

Different states have different minimum wages for different category or simply Skilled/Semi Skilled/Unskilled

We will take One Lower Minimum wages Example & One higher minimu  wages Example 

Lower Minimum wages

Basic
Special Allowance
Total
Earlier Bonus Paid
As per New Amendment
Difference
4150
2767
6917
3500
7000
3500



Higher Minimum wages


Basic
Special Allowance
Total
Earlier Bonus Paid
As per New Amendment
Difference
5800
2640
8440
3500
8440
4940


Highest Minimum wages 

Basic
Special Allowance
Total
Earlier Bonus Paid
As per New Amendment
Difference
10100
2698
 12798
Was Not eligible
12798  
12798

However, please note that the figures will be required to be looked at State wise and for the earlier period and skilled category wise on these combination basis.

Employees who were paid bonus in the year 2014 -2015 either monthly or yearly difference amount is to be paid as per the new amendment, further those employees who were not in the bracket of bonus those employees also need to pay. Bonus is to be paid on paid days. Employee who were working & left the organisation & who were eligible also need to be paid.

The Concept of old calculation i,e earned basic x8.33 and straight way employer used to pay Rs 3500 but now this concept will not work in the new amendment the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher’’ is to be paid

In My view we should not be in a hurry to pay the same just wait for few days

After paying the difference  revised Form No 'D" return is to be filed