SIGNIFICANT CHANGES EFFECTED UNDER THE PAYMENT OF BONUS
(AMENDMENT) ACT, 2015
The latest amendment to the Payment of Bonus Act, 1965
("Principal Act") has come into effect through the
Payment of Bonus (Amendment) Act, 2015 ("Amendment"). The
Amendment has brought about significant changes to Section 2
(Definitions) and Section 12 (Calculation of bonus with respect to
certain employees).
BACKGROUND
The Act provides a statutory right to employees of an
establishment to share the profits of his/her employer. As per the
Principal Act, any employee who was drawing a salary or wage not
exceeding ten thousand rupees per month was eligible to be paid a
bonus.
Section 2 (13) of the Principal Act states that,
"employee" means any person (other than an
apprentice) employed on a salary or wage not
exceeding ten thousand rupees per mensem in any
industry to do any skilled or unskilled manual, supervisory,
managerial, administrative, technical or clerical work for hire
