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Sunday, October 25, 2015

CABINET APPROVES BONUS CALCULATION CEILING Rs 7000/

The Cabinet on Wednesday decided to double the wage ceiling for calculating bonus 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.

3 comments:

  1. The order for bonus of Rs 3454/- has already been issued. So how to claim the balance amount. Please elaborate.

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  2. This enhanced bonus will be applicable for next year? They are making us fools. Order saying this is wef 01 Apr 2015. Please anybody clarify.

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  3. This is another Political drama by the BJP. The Govt. has already issued an Order of Bonus (Rs.3,454/-). Since it is effective from 1st April, 2015, this is not applicable for this year's Bonus as we get Bonus for the last financial year 2014-15 (upto March, 2015). This Govt. is taking all the anti-employee Policies and even pressurised the 7th Central Pay Commission to delay its report for four more months.

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