Govt Doubles Monthly Bonus Calculation Ceiling To Rs 7,000
“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
