Sunday, October 18, 2015

Bonus Enhancement

Govt to bring more workers under bonus ambit

Ajith Athrady, Oct 17, 2015: NEW DELHI: DHNS:

Bandaru Dattatreya. PTI file photo

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.

According to the proposal, 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 Election Commission has approved the Labour Ministry’s proposal and the Union Cabinet is likely to take up the issue on promulgating ordinance next week. From this year onwards, bonus will be linked to minimum wages. The government is in the process of revising the minimum wages, a senior official in the Ministry of Labour told Deccan Herald.

In a recent meeting with trade unions and the ministry, 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 the minimum wage notified by the government for the category of employment, whichever is higher, an official in the Ministry told Deccan Herald.

Sources said despite reservations by the industry representatives on the revised ceilings, the government has decided to go ahead with the proposal.Trade unions

Though the trade unions demanded the abolition on ceiling on payment of bonus due to rising inflation, the government rejected it.

The wage ceiling and the entitlement ceiling were last revised in 2007 and made effective retrospectively from 2006, . 


Saturday, October 10, 2015

Bonus Ceiling : Revision of eligibility and calculation ceilings are expected after Bihar Elections

Bonus Ceiling : Revision of eligibility and calculation ceilings are expected after Bihar Elections

Enhancement of the ceiling of bonus
NC JCM Staff Side Secretary said in the letter regarding the issue of bonus ceilings, the letter reproduced and given below…
Shiva Gopal Mishra
Ph.: 23382286
National Council (Staff Side) Joint Consultative Machinery
Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
E Mail :
Dated: October 9, 2015
All Constituent Organizations of National Council(JCM)(Staff Side)
Dear Comrades,
Sub: Enhancement of the ceiling of bonus
Ministry of Labour(Government of India) has sent a proposal to the Cabinet for enhancement of ceiling of bonus from Rs.3500 to Rs.7000 with a cap of maximum payment of Rs.20,000.
Though the Election Commissioner has cleared it, but it has not been included in the Cabinet Agenda for the reasons best known to government, but we are hopeful that, it may be finalized after Bihar elections.
Yours faithfully,
(Shiva Gopal Mishra)
General Secretary
Source: NC JCM Staff Side