Labour minister favours enhancement of wage ceiling for bonus

Labour and Employment Minister Narendra Singh Tomar today favoured suitable enhancement in wage ceiling to enable more workers get bonus.
He also asked industry and trade unions to strike a balance in dealing with labour issue.
Chairing a tripartite consultation meeting on Amendment to the Payment of Bonus Act, 1965, here today, he said the present system of two wage ceiling for entitlement should be suitably enhanced from time to time.
In this regard, he talked about a proposal to amend the Payment of Bonus Act, 1965, by enhancing the eligibility ceiling from Rs 10,000 to Rs 18,000 per month and calculation of ceiling from Rs 3,500 to Rs 6,000 per month.

The recommendation had been approved by the Standing Committee on Labour in its 46th Session held in January.
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.
The Payment of Bonus Act was enacted on September 25, 1965 to provide for the payment of bonus to persons engaged in certain establishments on the basis of profits or production and for matters connected therewith.
The Act provides for payment of bonus to employees of factories and establishments employing 20 or more persons.