Payment of Bonus Amendment Bill – Brief note and what is expected?
Government of India has passed the Payment of Bonus Act Amendment Bill in winter session of parliament last year. This bill is going to have a huge impact on the calculation of Productivity linked bonus being paid to central government employees every year during puja holidays. We have brought brief description about the impact of this bill and previous bills. It is also being reported that Railway Board is working out a formula which will nullify the proposed enhancement in Bonus Payments. Let’s wait and watch how the things roll out in coming days for the time being please have a look on the things as they stand now….
THE PAYMENT OF BONUS ACT, 1965 &
PLB TO RAILWAYMEN
BY: K.V.RAMESH, Sr.JGS/IRTSA
PAYMENT OF BONUS ACT, 1965 & AMENDMENTS THEREOF
- Minimum bonus 8.33% of the salary/wage of an employee.
- Maximum bonus including productivity linked bonus shall not exceed 20% of the salary/wage of an employee. Previous amendment of 2007 was notified on 13 December 2007 and made effective from 1st April, 2006.
- Minimum bonus of 8.33% of (Rs. 3500/- X 12= Rs. 42,000/-) is approximately Rs. 3500/-.
- 20% of above referred Rs. 42,000/- is Rs. 8,400/-. However, the limit is given as Rs. 8,300/-.