Govt
Doubles Monthly Bonus Calculation Ceiling To Rs
7,000
New Delhi: The Cabinet today decided
to double the wage ceiling for calculating bonus to Rs 7,000 per month for
factory workers and establishments with 20 or more workers.
“The Payment of Bonus (Amendment)
Bill, 2015 to enhance the monthly bonus calculation ceiling to Rs 7,000 per
month from existing Rs 3,500 was approved by Union Cabinet here,” a source said
after the Cabinet meeting.
The amendment bill will be made effective from April 1, 2015. Now the bill
will be tabled in Parliament for approval.
The bill also seeks to enhance the
eligibility limit for payment of bonus from the salary or wage of an employee
from Rs 10,000 per month to Rs 21,000.
The Payment of Bonus Act 1965 is
applicable to every factory and other establishment in which 20 or more persons
are employed on any day during an accounting year.
The bill also provides for a new
proviso in Section 12 which empowers the central government to vary the basis
of computing bonus.
At present, under Section 12, where
the salary or wage of an employee exceeds Rs 3,500 per month, the minimum or
maximum bonus payable to employees are calculated as if his salary or wage were
Rs 3,500 per month.
The last amendment to both the
eligibility limit and the calculation ceilings under the said Act was carried
out in 2007 and was made effective from April 1, 2006.
This amendment in the Act to
increase wage ceiling and bonus calculation ceiling was one of assurances given
by the Centre after 10 central trade unions went on one-day strike on September
2.
The government had hinted at meeting
workers’ aspirations on nine out of 12 demands submitted by the unions.
PTI
