Tuesday, November 24, 2015

Govt doubles monthly bonus calculation ceiling to Rs 7,000

Union cabinet has given nod to the Payment of Bonus (Amendment) Bill, 2015 toenhance the monthly bonus calculation ceiling to Rs 7,000 per month from existing Rs. 3,500 w.e.f. April 1, 2015. Last such amendment was carried out in 2007.
  • 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.
As per the proposed provisions bill 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.
  • To provides a new proviso in Section 12 which empowers the central government to vary the basis of computing bonus.
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. Now the bill will be tabled in Parliament for approval.

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