The law governing the payment of the end-of-year bonus, the Economy and Financial Measures Bill, has been amended. This will undeniably impact most of us. The clause 31A of the Employment Rights Act is what now dictates the calculations of the end-of-year bonus.
Previously, as has been the case for years now, employees would get bonuses of amounts equivalent to a month’s salary. From now on, though, the word “earnings” based on which the ‘13th month’ is calculated, will include all the other allocations that the employee has for the whole year. This also involves the refunding of the annual holidays. Ah, it was only a matter of definitions?
To whom goes the credit?
The minister of employment, Shakeel Mohamed, highlighted that he was the one to have brought the positive changes. He stated that he considers it unjust that the calculation of the bonus is based on only the salary. According to him, a person’s performance is to be evaluated on his productivity as well.
The union activist , Ashok Subron, affirmed that this is a positive change, and added that this is the fruit of the hard work of union members.