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Bonus – Government has no proposal to waive the ceiling

Bonus to Government and Private Employees – Minister replies that Government has no proposal to waive the ceiling in salary and maximum bonus due to large financial implication

GOVERNMENT OF INDIA
MINISTRY OF  LABOUR AND EMPLOYMENT
RAJYA SABHA

UNSTARRED QUESTION NO-4604

ANSWERED ON-08.05.2013

Amendment in Bonus Act

4604 . SHRI RAMACHANDRA KHUNTIA

(a)whether it is a fact that at present skilled workers who are really contributing to production and productivity are not getting bonus; and
(b)whether Government is planning to amend the Bonus Act and waive the ceiling in salary and maximum bonus so as to make everybody in a production unit eligible to get the bonus?

ANSWER

MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI KODIKUNNIL SURESH)

(a): As per the Payment of Bonus Act, 1965, any employee is entitled to get bonus provided he / she is considered as an eligible employee. As per the Act, an “employee” means any person (other than an apprentice) employed on a salary or wage not exceeding ten thousand rupees per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied.” Government has no specific information of skilled workers being denied bonus.
(b): The calculation ceiling and eligibility limit has been revised from Rs. 2500/- to Rs. 3500/- per month and Rs. 3500/- to Rs. 10,000/- p.m. respectively vide the Payment of Bonus (Amendment) Act, 2007 notified on 13/12/2007 and made effective from 1st April, 2006. Keeping in view the large financial implications for both for the Public and Private Sectors further amendment to the Payment of Bonus Act for waiving both the ceilings is not considered feasible at this stage.

Source: rajyasabha.nic.in

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