PAYMENT OF BONUS ORDINANCE

The Government of India has promulgated an Ordinance “Payment of Bonus (Amendment) Ordinance, 2007” amending the Payment of Bonus Act, 1965. The salary limit for entitlement of bonus has been increased from Rs. 3,500/- per month to Rs. 10,000/- per month. Similarly, the calculation for bonus will be on a salary limit of Rs. 3,500/- per month instead of Rs. 2,500/- per month.

The employees, as employed through contractors on building operations who were excluded from the purview of the Act, have now been covered under the Payment of Bonus Act.

The amendment has been made effective from 1.4.2006. The extracts of the notification are reproduced below for the information and necessary action of members.

( P K SHARMA )
Legal Advisor

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The Gazette of India
Extraordinary Part-II, Section-I
New Delhi, Saturday, October27, 2007/Kartika 6, 1020
Ministry of Law and Justice
(Legislative Department)
New Delhi, the 27th October 2007

THE PAYMENT OF BONUS (AMENDMENT) ORDINANCE, 2007
No.8 of 2007

Promulgated by the President in the Fifty-eighth year of the Republic of India.

An Ordinance further to amend the payment of Bonus Act, 1965.

Whereas, Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for here to take immediate action.

Now therefore, in exercise of the powers conferred by clause(1) of Article 123 of the Constitution, the President is pleased to promulgate the following Ordinance.

1.Short title and commencement - (1) This Ordinance may be called the Payment of Bonus (Amendment) Ordinance, 2007.

(2) It shall be deemed to have come into force on the 1st day of April, 2006.

2. Amendment of Section 2 – In section 2 of the Payment of Bonus Act, 1965 (21 of 1965) (hereinafter referred to as the principal Act) in clause (13), for the words “three thousand and five hundred rupees”, the words “ten thousand rupees shall be substituted.

3. Amendment of Section 12 – In section 12 of the principal Act, for the words “two thousand and five hundred rupees”, in both the places where they occur, the words “three thousand and five hundred rupees” shall be substituted.

4. Amendment of section 32, - In section 32 of the principal Act, clause (vi) shall be omitted.