Labour Minister welcomes passage of Payment of Bonus Bill

Welcoming passage of the Payment of Bonus Bill in Rajya Sabha, Labour Minister Bandaru Dattatreya today said it will benefit crores of workers whose wages are below Rs 21,000 per month.
The Payment of Bonus (Amendment) Bill, 2015 moved by Dattatreya, was passed in Rajya Sabha today by a voice vote. Lok Sabha had given its approval to the legislation yesterday.
"The benefits will be effective from April 1, 2014 in all establishments having 20 or more employees," the minister told reporters here.
The amendment showcases the resolve of the government to ensure job security, wage security and social security for the workforce to realise the vision of Make in India, Skill India and Digital India, he added.

The amendment provides the benefits of the Act would be deemed to have come into force on April 1, 2014, instead of April 1, 2015.
It provides for enhancing the monthly bonus calculation ceiling to Rs 7,000 per month from the existing Rs 3,500. It also enhances the eligibility limit for payment of bonus from Rs 10,000 per month to Rs 21,000 per month.

The Payment of Bonus Act, 1965, is applicable to every factory and other establishments in which 20 or more persons are employed on any day during an accounting year.
The last amendment to the eligibility limit and the calculation ceiling was carried out in 2007 and made effective from April 1, 2006.

The amendment to raise wage ceiling and bonus calculation ceiling was one of the assurances given by the Centre after 10 day central trade unions went on one-day strike on September 2.