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Sections
Section 1 - Short title and commencement
PAYMENT OF BONUS (AMENDMENT) ACT, 2015
Preamble - PAYMENT OF BONUS (AMENDMENT)
ACT, 2015
THE PAYMENT OF BONUS
(AMENDMENT) ACT, 2015
[Act No. 06 of 2016]
[31st December, 2015]
PREAMBLE
An Act further to
amend the Payment of Bonus Act, 1965.
BE
it enacted by Parliament in the Sixty-sixth Year of the Republic of India as
follows:-
Section 1 - Short title and commencement
(1) This Act may be called the Payment of Bonus
(Amendment) Act, 2015.
(2) It shall be deemed to have come into force on the
1st day of April, 2014.
Section 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 ''ten thousand rupees'', the
words ''twenty-one thousand rupees'' shall be substituted.
Section 3 - Amendment of section 12
In section 12 of the principal Act,-
(i) for the words ''three thousand and five hundred
rupees'' at both the places where they occur, the words ''seven thousand rupees
or the minimum wage for the scheduled employment, as fixed by the appropriate
Government, whichever is higher'' shall respectively be substituted;
(ii) the following Explanation shall be inserted at the
end, namely:-
'Explanation.-For
the purposes of this section, the expression ''scheduled employment'' shall
have the same meaning as assigned to it in clause (g) of section 2 of the Minimum Wages Act, 1948 (11 of
1948).'.
Section 4 - Amendment of section 38
In section 38 of the principal Act, for sub-section (1),
the following sub-section shall be substituted, namely:-
''(1)
The Central Government may, subject to the condition of previous publication,
by notification in the Official Gazette, make rules to carry out the provisions
of this Act.''.
Statement of Objects and Reasons - PAYMENT
OF BONUS (AMENDMENT) ACT, 2015
STATEMENT OF OBJECTS
AND REASONS
(1) The Payment of Bonus Act, 1965 (the Act) was
enacted with a view to provide for the payment of bonus to persons employed in
certain establishments on the basis of profits or on the basis of production or
productivity and for matters connected therewith. Thereafter, the Act was
amended several times and last amended in the year 2007.
(2) According to clause (13) of section 2 of the Act,
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 or reward, whether the terms of employment
be express or implied. However, according to section 12 of the Act, the bonus
payable to an employee whose salary or wage exceeds three thousand and five
hundred rupees per mensem shall be calculated as if his salary or wage were
three thousand and five hundred rupees per mensem.
(3) ?The Central
Government has been receiving representations from trade unions, individuals
and various associations for enhancement or for removal of the above ceilings.
After due consideration, the Central Government has decided to enhance the
eligibility limit for payment of bonus from ten thousand rupees per mensem to
twenty-one thousand rupees per mensem. The Central Government has also decided
to raise the calculation ceiling from three thousand and five hundred rupees
per mensem to seven thousand rupees per mensem or the minimum wage for the
scheduled employment, as fixed by the appropriate Government, whichever is
higher.
(4) Section 38 of the Act empowers the Central
Government to make rules for the purpose of giving effect to the provisions of
the Act. Since, the said section does not provide for the previous publication
of the rules, it is proposed to insert an enabling provision providing for
previous publication for the purpose of inviting objections and suggestions in
tune with the other legislations pertaining to welfare of labour.
(5) The Bill seeks to achieve the above objectives.