Bonus Arrears to be Paid on Account of Increase in Bonus Calculation Ceiling with Effect from April 2014

Bonus Arrears to be Paid on Account of Increase in Calculation Ceiling with Effect from April 2014

Payment of Bonus (Amendment) Bill 2015 to increase the Bonus Calculation Ceiling and eligibility ceiling has been Passed in Lok Shabha yesterday.

As per the provisions of Bonus bill the Bonus Calculation ceiling has to be raised from 3500 to 7000 and eligibility ceiling of wage from 10000 to 21000 per month. Earlier Cabinet gave its approval for this Bonus bill and said it will be come into effect from 1.4.2015 after passed in Parliament.

Now Labour Minister Bandaru Dattatreya said while moving an official amendment to the Bill, ”The Prime Minister spoke to me and asked why should the benefits of this Act should accrue to workers from 2015, it should made available from the April 2014″.

It is really very good news for entire working class, since it is coming into force with effect from 1st April 2014. Due to this retrospective effect of Bonus Act 1.4.2014, double the amount of Bonus has to be paid for the year 2014-2015.

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Bonus calculation ceiling revised from April 2014 – Arrears of bonus likely!

Bonus calculation ceiling revised from April 2014 – Arrears of bonus likely!

LS passes Bonus Bill; benefits to accrue from April 2014

The Lok Sabha on Tuesday passed a bill allowing doubling of wage ceiling for calculating bonus to Rs 7,000 per month for factory workers with establishments with 20 or more workers, with the benefits being applicable retrospectively from April 2014.

The Payment of Bonus (Amendment) Bill, 2015, was passed by a voice vote, with some members objecting to the raising of eligibility limit for payment of bonus from a salary of Rs 10,000 per month to Rs 21,000.

Replying to a debate on the legislation, Labour Minister Bandaru Dattatreya said the Government has ensured that the interest of workers are protected and there is no infringement on their justifys.

“Because of Bihar Elections this bill got delayed… The Prime Minister spoke to me and asked why should the benefits of this Act should accrue to workers from 2015. It should be made available from the April 2014,” he said while moving an official amendment to the Bill.

The official amendment provides that the benefits of the Act would be deemed to have come into force on April 1, 2014, instead of April 1, 2015.

Dattatreya said the Ministry has held 21 tripartite meetings with all central trade unions while arriving at a decision.

The Bill provides for enhancing monthly bonus calculation ceiling to Rs 7,000 per month from the existing Rs 3,500.

It also seeks to enhance the eligibility limit for payment of bonus from Rs 10,000 per month to Rs 21,000 per month.

“The Government’s paramount intention is to safeguard the interest of workers… There is no infringement of workers’ justifys and whatever the government does will be in the interest of workers,” Dattatreya said.

After the bill was passed, Deputy Speaker M Thambidurai, who was in the Chair, said the government should be congratulated for bringing the measure as also for effecting the benefits retrospectively.

Source: DDI News