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Centre considering enhancing eligibility limit for bonus
Kolkata, May 28: In a move that could come as a bonanza for over 20 lakh employees of public sector undertakings, the Centre is considering enhancing eligibility and calculation ceiling limits of bonus under Payment of Bonus Act.
Kolkata, May 28: In a move that could come as a bonanza for over 20 lakh employees of public sector undertakings, the Centre is considering enhancing eligibility and calculation ceiling limits of bonus under Payment of Bonus Act.
The ministry of heavy industry and public enterprises has initiated the move to review the eligibility and the calculation ceiling for payment of bonus/ex-gratia under the Payment of Bonus Act, according to documents available in this regard.
The ministry has sought relevant details from chief executives of all the PSUs to enable the government to take a final decision in this regard.
Confirming the development, senior officials of department of public enterprise who did not want to be named, said, "the present proposal is to enhance the eligibility limit from Rs 3500 to Rs 7500 and the calculation ceiling from Rs 2500 to Rs 3500".
The Centre was also assessing the financial burden that the PSUs would have to bear in the event of amendment in the act. The government had asked chief executives to send a detailed assessment of the impact, officials said.
The move comes a year before the general election. It would further increase government's spending at a time when most of the state governments were passing through a severe financial crisis after announcement of recommendations of various pay commissions.
Bureau Report