Zee New Media
New Delhi: The Parliament passed the Payment of Bonus (Amendment) Bill, 2015 in the last Winter Session, and it was notified in the Gazette of India, Extraordinary, on 1st January, 2016 as Act No. 6 of 2016.
But are the workers, who are set to get higher bonus, satisfied with the government's announcement?
The Government has been receiving representations from trade unions for removal of all ceilings under the Payment of Bonus Act, 1965. There have also been asking for removal of eligibility limit, as well as make it mandatory to pay minimum bonus without linking to loss when the performance indicator satisfy grant of bonus.
The trade unions had called for a general strike in September 201 laying out these demands.
Under the amended law, all employees earning Rs 21,000 a month will be entitled to bonus, against the earlier limit of Rs 10,000.
Also, the ceiling for bonus calculation has been doubled from Rs. 3,500 to Rs. 7,500 a month.
This will retrospectively come into effect from April 1, 2014. This means an employee earning up to Rs. 7,000 per month will be eligible to a bonus on his or her entire salary.
However, if the salary is between Rs.7,000 and Rs. 21,000, the bonus will be calculated on the salary of Rs.7,000 a month.