Amendments to the payment of Bonus Act, 1965

Labour & Industrial 29198 views 97 replies

siddharth

C.A.

175 Points Joined June 2007

Hi,

The Cabinet has approved the Amendments to the payment of Bonus Act, 1965, which are as follows:-

Eligibility limit for payment of bonus to the employee earning salary or wage has been enhanced from Rs. 3,500/- per month to Rs.10,000/- per month.
Ceiling for purpose of calculation of bonus to the employee earning salary or wage has been enhanced from Rs. 2,500/- per month to Rs.3,500/- per month.
Employees employed through contractor on building operations will now be covered under The Payment of Bonus Act, 1965

Please let me know the what is the effective date of the above amendment.

Thanks in advance

Replies (97)

Ravikumar.G

Consultant

18525 Points Joined March 2007

The date which is not yet decided. It will be decided only coming on November2007 Parliament session.

Hi Ravi, Is our opinion is based on Section 38(3) of the Payment of Bonus Act,1965 which provided that "Every rule made under this section shall be laid as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days, which may be comprised in one session [or in two or more successive sessions], and if before the expiry of the session [immediately following the session or the successive sessions aforesaid], both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule". Pls confirm. So the amendment approved by cabinet will not have effect unless approved by the Parliament. Thanks in advance