Payment of Bonus (Amendment) Act, 2015 notified

The Payment of Bonus (Amendment) Bill, 2015 which seeks to amend the Payment of Bonus Act, 1965 was introduced in the Lok Sabha by the Minister of State for Labour and Employment on 7th December 2015 & was passed by the Lok Sabha on 22nd December 2015 and subsequently Rajya Sabha passed it on 23rd December 2015. The Bill received the assent of the President on the 31st December, 2015, and was notified as the Payment of Bonus (Amendment) Act, 2015 on 1st January 2016. The Act provides for the annual payment of bonus to employees of certain establishments including factories and establishments employing 20 or more persons.  As per the amendments:

  1.  The eligibility threshold for employee payment of statutory bonus has been increased to INR 21,000 per month from the current limit of INR 10,000 per month &
  2. The wage ceiling for computing bonus has been increased from INR 3,500 per month to INR 7,000 per month.
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