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Bonus Ceiling Limit 21000 Notification PDF
The Lok Sabha, the lower house of the Indian Parliament, recently passed some significant modifications to the Payment of Bonus Act. These amendments aim to benefit workers by expanding the eligibility criteria for bonuses and increasing the amount of incentive they can receive. One of the key changes introduced by the amendments is the increase in the monthly wage eligibility limit for employees.
Previously, workers earning up to Rs 10,000 per month were eligible for bonuses. However, with the new modifications, this limit has been raised to Rs 21,000. This means that a larger number of workers will now be eligible to receive bonuses, providing them with additional financial support and recognition for their hard work.
The increase in the wage eligibility limit, the amendments also seek to raise the monthly bonus calculation ceiling. Previously, the calculation ceiling stood at Rs 3,500. However, with the new modifications, this ceiling has been raised to Rs 7,000. This change is significant as it allows workers to receive a higher amount of bonus, reflecting their dedication and contribution to their respective organizations.
These modifications to the Payment of Bonus Act are a result of the demands put forth by ten central trade unions. In September, these unions organized a strike to highlight various issues faced by workers across the country. One of their key demands was the enhancement of the bonus eligibility criteria and calculation ceiling. The passage of these amendments by the Lok Sabha is a positive step towards addressing these demands and ensuring that workers receive fair and just compensation for their efforts.
The central trade unions have expressed their appreciation to the government for fulfilling one of their commitments under the 10-point charter of demands. They hope that the government will continue to work towards fulfilling the remaining commitments as well, thereby further improving the working conditions and welfare of workers across various sectors.
This move by the Lok Sabha to pass the modifications to the Payment of Bonus Act showcases the government’s commitment to addressing the concerns of workers and ensuring their well-being. By expanding the eligibility criteria and increasing the bonus calculation ceiling, the government aims to provide workers with a sense of financial security and recognition for their contributions to the growth and development of the country.
Bonus Ceiling Limit 21000 Notification
After being passed by the Lok Sabha, the bill will now be tabled in the Rajya Sabha for further approval. Once it receives the necessary approval, it will be made effective from April 1, 2014. The Payment of Bonus Act 1965, which is applicable to factories and establishments with 20 or more employees during an accounting year, will be impacted by these changes.
The bill introduces a new proviso in Section 12 of the Act, which grants the central government the authority to vary the basis for calculating bonuses. Currently, Section 12 states that if an employee’s salary exceeds Rs 3,500 per month, the minimum or maximum bonus payable to them should be calculated as if their salary was Rs 3,500 per month. The proposed amendment empowers the central government to modify this calculation basis.
The last amendment to the eligibility limit and calculation ceilings under the Act occurred in 2007 and became effective from April 1, 2006. This recent amendment to increase the wage ceiling and bonus calculation ceiling was one of the assurances made by the Central Government in response to the demands of the ten central trade unions. These unions organized a day-long strike on September 2 to draw attention to various issues faced by workers.
The passage of this bill by the Lok Sabha demonstrates the government’s commitment to addressing the concerns of workers and ensuring their welfare. By allowing for adjustments in the calculation of bonuses and increasing the wage ceiling, the government aims to provide fair and just compensation to employees.
It is crucial for both employers and workers to familiarize themselves with these modifications and understand how they will impact the calculation and distribution of bonuses. Employers should ensure compliance with the revised provisions of the Act to avoid any legal complications and to uphold the rights of their employees. Once the bill is approved by the Rajya Sabha and becomes effective, it will bring about important changes in the payment of bonuses to workers.
These amendments reflect the government’s efforts to create a more inclusive and supportive environment for workers across various sectors. In conclusion, the proposed modifications to the Payment of Bonus Act are aimed at improving the eligibility criteria and calculation of bonuses for workers. The bill’s passage in the Lok Sabha and its upcoming consideration in the Rajya Sabha signify the government’s commitment to addressing the demands of workers and ensuring their well-being.