Bonus ceiling for factory workers may be raised

PTI New Delhi | Updated on February 02, 2014

An amendment in the Payment of the Bonus Act 1965 could benefit close to three crore employees.

An upward revision in the ceiling of bonus paid to employees of factories and other establishments is on the cards as a proposal in this regard would be taken up for consideration at the upcoming Indian Labour Conference (ILC) here next month.

At present, employees drawing salary or wage not exceeding Rs 10,000 per month are eligible for payment of bonus with a ceiling of Rs 3,500 per month.

Trade unions have been demanding removal of conditions on the payment of bonus as salary drawn by even a small time employee these days is much higher and therefore the limits hold little relevance.

Members of Parliament have also raised the issue through private members Bill, desiring that at least all the workers should be entitled to get the bonus irrespective of their salary or wage under the Payment of the Bonus Act 1965.

The proposal to consider the issue at the ILC was finalised at the 46th session of the Standing Labour Committee meeting held last Friday. The revision in the bonus would entail amendment to the Act.

According to the proposal of the Labour Ministry, going by the current price index “there is a case in point to revise the calculation ceiling to Rs 6,000 and also the eligibility limit to Rs 18,000”.

A revision in the ceiling on the bonus paid was one of the demands of the trade unions during their two-day general strike in February last year.

An amendment in the Act could benefit close to three crore employees.

The ILC would also take up for consideration a proposal of extending social security benefits for workers both in the organised as well as unorganised sector and review on implementation of the recommendations of the previous three ILCs especially on the issue of contract labour and minimum wages.

Published on February 02, 2014

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