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Monali (Service)     04 June 2009

Changes in Bonus Act

Due to changes in Bonus Act which increases the eligibility limit from 3500 to 10000, many of the employees who were earlier not eligible for bonus is now getting compulsory bonus under Bonus Act which is 20% of BS+DA (inlcdg VDA). So in this situation the employees' package before amedment was Rs. 100/-, is now Rs. 120/- which creates additional burden of Rs. 20/- on the employer. Thus, the employer decides to stop his SAF contribution (15% + surplus) and pay him bonus @ 20%. Is this justifiable?



 1 Replies

I do not know what is this SAF. But, employer cannot stop a customary concession without giving any valid notice to the employee. If he gives notice of stopping this SAF, employee is entitlted to challenge with withdrawal of customary benefit.

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