NEW DELHI: In a move that will benefit lakhs of factory workers on the occasion of festive season, the Union Cabinet today approved a proposal to double the wage ceiling for calculating bonus to Rs 7,000 per month.
Official sources said after the meeting that the Cabinet gave its go ahead to the Payment of Bonus (Amendment) Bill, 2015 which provides the monthly bonus calculation ceiling to be raised to Rs 7,000 per month from existing Rs 3,500. Factory workers and the establishments having workers strength 20 or more will be covered under the act.
The bill also seeks to enhance the eligibility limit for payment of bonus from the salary or wage of an employee from Rs 10,000 per month to Rs 21,000.
The ceiling for calculating bonus has been raised after the gap of more than 11 years. The last such enhancement was effected in 2007.
Trade unions across the country were demanding the increase in wage ceiling and bonus calculation ceiling for a long time and resorted to one-day strike on September 2. (UNI)
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