BONUS - IMPACT OF RECENT AMENDMENT By: S N MURTHY, SENIOR ADVOCATE
BONUS - IMPACT OF RECENT AMENDMENT By: S N MURTHY SENIOR ADVOCATE This has reference to the recent amendment to the Payment of Bonus Act 1965. Under the amendment, apart from increasing the notional salary for the purpose of working out the bonus payable to Rs.7,000/-, it is also made clear that where minimum wages are fixed, the notional salary will be Rs.7,000/- or minimum wages whichever is higher. Section-2(13) of the Act which defines an “employee” as under: [after amendment]. "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding twenty one thousand rupees per mensem in any industry to do any skilled or unskilled, manual, supervisory, managerial, administrative, technical or clerical work for hire or reward whether the terms o