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Stay of retrospective effect of the Payment of Bonus (Amendment) Act, 2015

The Payment of Bonus (Amendment) Act, 2015 had received assent of the President of India on 31 December 2015. The said Amendment Act provides for changes in the eligibility limit and calculation of bonus of the employees.

Eligibility Limit increased: The eligibility of payment of bonus to employees has been increased from drawn salary of Rs 10,000/- to Rs 21,000/-.

Calculation of Bonus: For calculating bonus, the salary limit is increased from Rs 3,500/- to Rs 7,000/-.

Retrospective Amendment: The said Amendment Act is made retrospectively applicable from 1 April 2014. However, the Kerala High Court has, in the United Planters’ Association of Southern India and S. B. Prabhakar v. Union of India, on 27 January 2016 stayed the applicability of the amendment Act with retrospective effect, vide an interim order, and until disposal of writ petition, the said Amendment Act shall be applicable prospectively from 2015-16.

Copy of the said Keral High Court order can be access from here.

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