The government has notified the Payment of Bonus Act on January 1, a move which will benefit crores of workers whose wages are below Rs 21,000 per month.
New Delhi: The government has notified the Payment of Bonus Act on January 1, a move which will benefit crores of workers whose wages are below Rs 21,000 per month.
The Payment of Bonus (Amendment) Bill, 2015 was passed in the recently concluded Winter Session of Parliament.
The Act increases eligibility limit from Rs 10,000 per month to Rs 21,000 and the calculation ceiling from Rs 3,500 to Rs 7,000 or the minimum wage for the scheduled employment, as fixed by the concerned state, whichever is higher.
These provisions will come into force from April 1, 2014. "The Payment of Bonus (Amendment) Act, 2015 has been published in the Gazette of India, Extraordinary on January 1, 2016," an official statement said Friday.
Government had been receiving representations from trade unions for removal of all ceilings under the Payment of Bonus Act, 1965, it added.
It is also one of the demands made by unions during the country-wide general strike held in February, 2013 and September, 2015.
As the last revision in these two ceilings were made in the year 2007 and was made effective from April 1, 2006, it was decided by the government to make appropriate amendments to the Payment of Bonus Act, 1965, the statement said.