BUSINESS

Bonus Act notified

The Union government has notified the Payment of Bonus (Amendment) Act, 2015, allowing lakhs of workers to become eligible to bonus retrospectively from the last financial year, the Labour Ministry said in a statement on Friday.

While the decision has enthused workers, the industry is unhappy. It has written to the government suggesting ways to simplify bonus distribution. It has said the new Act will lead to financial stress, especially on small and medium enterprises, and as the account books for the previous financial year would have been closed, difficulties are bound to crop up in bonus distribution.

Under the law, all employees earning Rs. 21,000 a month will be entitled to bonus, against the earlier limit of Rs. 10,000. Also, the ceiling for bonus calculation has been doubled from Rs. 3,500 to Rs. 7,500 a month. This will retrospectively come into effect from April 1, 2014. This means an employee earning up to Rs. 7,000 per month will be eligible to a bonus on his or her entire salary. If the salary is between Rs. 7,000 and Rs. 21,000, bonus will be calculated on the salary of Rs. 7,000 a month. The notification was published on January 1.

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