Central Govt doubles monthly bonus calculation ceiling to Rs 7,000!

The Cabinet Wednesday decided to double the
wage ceiling for calculatingbonus 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.