Payment of Productivity Linked Bonus (Amendment) Bill 2015 has been passed by parliament
- The Payment of Bonus (Amendment) Bill, 2015 was introduced in Lok Sabha by the Minister of State for Labour and Employment, Mr. Bandaru Dattatreya, on December 7, 2015. The Bill seeks to amend the Payment of Bonus Act, 1965.
- The Act provides for the annual payment of bonus to employees of certain establishments (including factories and establishments employing 20 or more persons). Under the Act, bonus is calculated on the basis of the employee’s salary and the profits of the establishment.
- Employees eligible for bonus: The Act mandates payment of bonus to employees’ whose salary or wage is up to Rs 10,000 per month. The Bill seeks to increase this eligibility limit to Rs 21,000 per month.
- Calculation of bonus: The Act provides that the bonus payable to an employee will be in proportion to his or her salary or wage. However, if an employee’s salary is more than Rs 3,500 per month, for the purposes of calculation of bonus, the salary will be assumed to be Rs 3,500 per month. The Bill seeks to raise this calculation ceiling to Rs 7,000 per month or the minimum wage notified for the employment under the Minimum Wages Act, 1948 (whichever is higher).
In this regard General Secretary, AIRF Sh. Shiv Gopal Mishra has written a letter to Hon’ble Minister for Railway for early disbursement of the Productivity Linked Bonus for the year 2014-15.
No.AIRF/387(252) Dated: Decembar 23rd, 2015
Hon’ble Minister for Railways,
Ministry of Railways,
Sub:- Payment of Arrear of Productivity Linked Bonus to Railwaymen for the year 2014-15
In this connection, it is mentioned that Parliament has passed the Payment of Bonus (Amendment) Bill 2015 on 22-12-2015. This Bill has a proposal to increase ceiling limit of wages from Rs. 3500/- to Rs. 7000/-. It is also worth mentioning that Railwaymen has been given Payment of PLB on Rs. 3500/- for FY 2014-15.
Since Parliament has passed the Payment of Bonus (Amendment) Bill 2015, and it has come into force on 01.04.2014, it is therefore requested that payment of arrears in respect of PLB pertaining to FY 2014-15 may be disbursed to railway employees at the earliest.
With kind regards!
Shiv Gopal Mishra,
General Secretary, AIRF