Govt may effect Bonus Ceiling hike to Rs 21,000 (basic + DA) a month soon – More Central Government Employees to be be covered for payment of Bonus
Workforce of the country has another reason to cheer in this festive season as the Narendra Modi-led government is set to promulgate an ordinance to amend Payments of Bonus Act 1965 to make more employees eligible for annual bonus.
Ministry of Labour has hinted that the ceiling of Bonus is likely to be hiked from the current ceiling of Rs.10,000 (basic + DA) per month to Rs.21,000 (basic + DA) a month.
After the Bihar elections Union Cabinet may discuss about this ordinance to amend Payments of Bonus Act 1965 to make more employees eligible for annual bonus.
If the Ordinance is approved, those earning up to Rs.21,000 (basic + DA) a month will now be eligible bonus. This would be a steep jump from the current ceiling of Rs.10,000 (basic + DA) per month.
The government is already in the process of revising the minimum wages. The Election Commission has approved the Labour Ministry’s proposal and the Union Cabinet is likely to take up the issue on promulgatingordinance next week. From this year onwards, bonus will be linked to minimum wages.
Ministry in a recent meeting with trade unions said that the government agreed to amend the Bonus Act by enhancing the eligibility ceiling under section 2(13) of the Act from Rs.10,000 per month to Rs.21,000 month. It also agreed to calculate ceiling under section 12 from Rs.3,500 per month to Rs.7,000 per month, or theminimum wage notified by the government for the category of employment.
Trade unions View
All the trade Unions demanded the abolition on ceiling on payment of bonus due to rising inflation, the Government rejected it.
Source: Deccan Herald