Thursday, December 10, 2015

Bill introduced in Parliament to hike bonus ceiling

Government introduced a bill in Lok Sabha that seeks to enhance pay eligibility limit of an employee for bonus to Rs 21,000 per month, from Rs 10,000, to make more workers eligible for the benefit.

The Payment of Bonus (Amendment) Bill, 2015 also seeks to enhance the monthly bonus calculation ceiling to Rs 7,000 per month from existing Rs 3,500. It will increase the quantum of bonus substantially.

The amendment bill will be made effective from April 1, 2015. The bill will amend, the Payment of Bonus Act 1965, which 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.
 

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