The Payment of Bonus (Amendment) Bill, 2015 notified:Increase in the Eligibility Limit under clause (13) of Section 2 and Calculation Ceiling under Section 12 of the Payment of Bonus Act, 2015

The Payment of Bonus (Amendment) Bill, 2015 was passed by the Parliament in the just concluded Winter Session of the Parliament. The Payment of Bonus (Amendment) Act, 2015 has been published in the Gazette of India, Extraordinary on 1st January, 2016 as Act No. 6 of 2016. The provisions of the Payment of Bonus (Amendment) Act, 2015 shall be deemed to have come into force on the 1st day of April, 2014.

The Payment of Bonus (Amendment) Act, 2015 envisages enhancement of eligibility limit under section 2(13) from Rs.10,000/- per month to Rs.21,000/- per month and Calculation Ceiling under section 12 from Rs. 3500 to Rs.7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher. The Payment of Bonus (Amendment) Act, 2015 also mandates previous publication of draft subordinate legislations, framed under the enabling provisions under the said Act, in the Official Gazette for inviting objections and suggestions before their final notification.

The Government has been receiving representations from trade unions for removal of all ceilings under the Payment of Bonus Act, 1965. It is also one of the demands made by them during the country-wide General Strike held in February, 2013 and September, 2015. As the last revision in these two ceilings were made in the year 2007 and was made effective from the 1st April, 2006, it was decided by the Government to make appropriate amendments to the Payment of Bonus Act, 1965.

These changes in the Payment of Bonus Act, 1965 will benefit thousands of work force.

PIB

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PAYMENT OF BONUS ACT, 1965 & AMENDMENTS THEREOF

• 
  Minimum bonus 8.33% of the salary/wage of an employee.
• Maximum bonus including productivity linked bonus shall not exceed 20% of the salary/wage of an employee.
• Previous amendment of 2007 was notified on 13 December 2007 and made effective from 1st April, 2006.
• Minimum bonus of 8.33% of (Rs. 3500/- X 12= Rs. 42,000/-) is approximately Rs. 3500/-.
• 20% of above referred Rs. 42,000/- is Rs. 8,400/-. However, the limit is given as Rs. 8,300/-.

Details of amendments to the Payment of Bonus Act, 1965:

a) The output for a year is reckoned by the equated net tonne kilometres by adding together:-

i) Total goods revenue net tonne kilometres.

ii) Non-suburban passenger kilometres converted by a factor of 0.076.

iii) Suburban passenger kilometres converted by a factor of 0.053.

b) The input is taken as the non-gazetted staff strength (excluding
RPF/RPSF personnel), increased by the incremental increase/decrease in
capital (over average of last three years) during the year.

C) Highest PLB amount of 78 days’ wages was paid for the financial years 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15.

d) The wage calculation ceiling prescribed for payment of PLB to the
eligible non-gazetted railway employees is 3500/- p.m. The maximum
amount payable per eligible railway employee is Rs. 8975 for 78 days.

• Amount paid as bonus never shown meaningful increase over last 15 years.
• Only between 2006-07 and 2007-08 there was a visible increase in bonus amount.
• If bonus is linked with inflation at the rate of average 12% per
  year from 2001-02, it should have become Rs.24000 now, even without
  considering any productivity improvement.
• 
  Bill passed in Lokshaba is a very late action taken by the Government.
• Railways should not try to put any rider on this very late action.

Source: IRTSA

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Payment of Arrear of Productivity Linked Bonus to Railwaymen for the year 2014-15

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. AIRF has demanded an Arrear on PLB for FY 2014-15.

Payment of 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).

Source: AIRF

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GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

RBE No.140/2015

No.E(P&A)II-2015/Bonus-1

New Delhi, Dated 02/11/2015

The General Managers/CAOs (R),
All Indian Railways & Production Units,
(As per mailing list)

Subject: Grant of ad-hoc bonus for 30 days to the Group ‘C’ & `D’ RPF/RPSF personnel for the financial year 2014-2015

The President is pleased to decide that all Group ‘C’ & ‘D’ RPF/RPSF personnel, may be granted ad-hoc bonus equivalent to 30 (thirty) days emoluments for the financial year 2014-2015, without any eligibility wage ceiling. The calculation ceiling of Rs.3500/- will remain unchanged.

2. The benefit will be admissible subject to the following terms and conditions:-

a) Only those Group ‘C’ & ‘D’ RPF/RPSF personnel who were in service on 31.3.2015 and have rendered at least six months of continuous service during the year 2014-2015 will be eligible for payment under these orders. Pro-rata payment will be admissible to the eligible personnel for period of continuous service during the year ranging from six months to a full year, the eligibility period being taken in terms of number of months of service (rounded to the nearest number of months).

b) The quantum of ad-hoc bonus will be worked out on the basis of average emoluments/calculation ceiling whichever is lower. To calculate ad-hoc bonus for one day, the average emoluments in a year will be divided by 30.4 (average number of days in a month). This will thereafter be multiplied by the number of days of bonus granted. To illustrate, taking the calculation ceiling of Rs.3500/-(where actual average emoluments exceed Rs.3500), ad-hoc bonus for thirty days would work out to Rs.3500×30/30.4 = Rs.3453.95 (rounded off to Rs.3454/).

c) All payments under these orders will be rounded off to the nearest rupee.

d) In the matter where the aforesaid provisions are silent, clarificatory orders issued vide this Ministry’s letter No.E(P&A)II-88/Bonus-3 dated 29.12.1988, as amended from time to time, would hold good.

e) All the Group ‘C’ & ‘D’ RPF/RPSF personnel, regardless of whether they are in uniform or out of uniform and regardless of place of their posting, shall be eligible only for ad-hoc bonus in terms of these orders.

3. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

Sd/-
(Salim. Md. Ahmed)
Deputy Director/E(P&A)-II
Railway Board.

Authority: http://www.indianrailways.gov.in/

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Grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) to Central Government Employees for the year 2014-15 — Extension of orders to Autonomous Bodies

F.No.7/22/2008 E-III(A)
Government of India
Ministry of Finance
Department of Expenditure
E III (A) Branch

New Delhi, the 26th October, 2015.

OFFICE MEMORANDUM

Subject:- Grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) to Central Government Employees for the year 2014-15 — Extension of orders to Autonomous Bodies.

Orders have been issued vide this Ministry’s Office Memorandum No.7/24/2007 E-III(A) dated 16th October, 2015 authorizing 30 days emoluments as Non-PLB (Ad-hoc bonus) for the accounting year 2014-15 to the eligible Central Government employees not covered by the Productivity Linked Bonus Schemes, subject to terms and conditions laid down therein.

2. The undersigned is directed to say that it has now been decided that the Non-PLB (Ad-hoc) bonus so admissible subject to the terms and conditions laid down in the aforesaid orders, may be extended to the employees of autonomous bodies, partly or fully funded by the Central Government which (i) follow the pattern of pay structure and emoluments identical to that of the Central Government and (ii) do not have any bonus or ex-gratia or incentive scheme in operation.

3. In case of doubt as to the operation of these orders the clarificatory orders, circulated vide this Ministry’s O.M. No.14(10)E-Coord/88 dated 4.10.88, as amended from time to time, may be kept in view, mutatis mutandis.

4. Any request for funding by the Government to meet the liability on account of Non-PLB (Ad-hoc bonus) in respect of various autonomous organizations would not be considered by the administrative Ministries concerned, as the expenditure on Non-PLB (Ad-hoc bonus) should be met from within the existing budgetary provisions of the respective organizations. While the Autonomous Bodies not funded by the Central Government may also adopt these orders as per their own administrative and financial judgment in respect of their employees, no liability for funding will, in any case, lie on the Central Government on this account.

sd/-
(Amar Nath Singh)
Deputy Secretary to the Govt. of India

Authority: www.finmin.nic.in

Click to view order in English and Hindi

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HEADQUARTERS OFFICE
EMPLOYEES’ STATE INSURANCE CORPORATION,
PANCHDEEP BHAWAN, CIG MARG, NEW DELHI-2
WEBSITE: wwvv.esic.nic.in IPh.-Oll-23234092.

NO.G-31/11/1/2005 – E.III

Dated: 15.10.2015

MEMORANDUM

Sub: Payment of advance against the Productivity Linked Bonus admissible for the employees of ESI Corporation – 2014-15 – regarding.

Approval of the Competent Authority is hereby communicated for the payment of advance against the Productivity Linked Bonus (PLB) equal to 60 (Sixty) days’ wages subject to the maximum of RS.7000/- (rupees seven thousand only) to the employees of the Corporation for the year 2014-15. The payment of the advance is subject to the condition that an undertaking (in the enclosed proforma) to the effect that “the advance will be adjusted against the PLB due for the year 2014-15 and any excess payment detected towards PLB for the year 2014-15 would be refunded forthwith“, shall be submitted by each eligible employee. The payment of advance is subject to the same terms and conditions that are applicable to the grant of PLB and are appended.

Payment of advance against bonus to adhoc employees and those who superannuated or retired on invalidation on medical grounds or died while in service before the last working day of February of the relevant year will be governed by the instruction issued by this office Memo. No, G-31/1 1/1/86-E.11Idated 02..03-1988, No. V-37/1 1/1/81 – E.III dated 22-02-1988 and No,G-31/11/1/88 – E.III dated 10-07-1989.

The Drawing and Disbursing Officer of the respective Regional Office/Sub-Regional Office may draw the advance aqainst the PLB in respect of staff working in outstation Branch Offices also for presentation to J.D. (F)/O. D. (F) concerned.

The Joint Director (Fin.)/Dy. Director (Fin.) will honour the bills submitted by the DDO and pay the proceeds under the existing procedure in the respective Regions/Sub-Regions.

The amount of advance against the PLB for the year 2014-15 may be paid to the eligible employees by 16.10.2015 under intimation to this office. The number of such employees who have been paid the advance may also be intimated. In case it is not possible to credit the advance amount into the bank J.Vcof the individual employee on 16.10.2015, cash payment of advance may be considered on specific request of the employee to alleviate hardship.

Hindi version will follow.

(S.K.SINHA)
DIRECTOR

Authority: www.esic.nic.in

Click to read the terms of conditions of payment of pl bonus

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As pe the information available in the official blog of Karnataka COC, bonus order for this year likely to be issued after 12.10.2015 only. The message is reproduced and given below for your information…

Adhoc Bonus Orders

The Union Finance Minister, Shri Arun Jaitley is on tour to USA and Peru in connection with recent developments in the global economy and lack of progress in the implementation of the 2010 IMF quota reforms during his official tour to Peru from October 7-11 .  

Hence Adhoc Bonus orders is likely to be issued after 12th October 2015.

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NC JCM Staff Side Secretary said in the letter regarding the issue of bonus ceilings, the letter reproduced and given below…

Shiva Gopal Mishra
Secretary

No.NC/JCM/2015

All Constituent Organizations of National Council(JCM)(Staff Side)

Dear Comrades,

Sub: Enhancement of the ceiling of bonus

Ministry of Labour(Government of India) has sent a proposal to the Cabinet for enhancement of ceiling of bonus from Rs.3500 to Rs.7000 with a cap of maximum payment of Rs.20,000.

Though the Election Commissioner has cleared it, but it has not been included in the Cabinet Agenda for the reasons best known to government, but we are hopeful that, it may be finalized after Bihar elections.

Source: NC JCM Staff Side

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F.No.26-01/2015-PAP
Government of India
Ministry of Communication & Information Technology
Department of Posts,
(Establishment Division)

Dak Bhawan, Sansad Marg,
New Delhi – 110 001
Dated: 7th October, 2015

1. All Chief Postmasters General
2. All Postmasters General
3. Deputy Director General (PAF), Department of Posts.
4. All General Managers (Finance)
5. Directors/Deputy Directors of Accounts (Postal)
6. Director, RAKNPA/Directors of All PTCs

Sub: – Productivity Linked Bonus for the Accounting year 2014-2015.

Sir/Madam,

The undersigned is directed to convey the sanction of the President of India to the payment of Productivity Linked Bonus for the accounting year 2014-15 equivalent of emoluments of 60 (sixty) Days to the employees of Department of Posts in Group ‘D’/MTS, Group ‘C’ and non-gazetted Group ‘B’Ex-Gratia payment of bonus to Gramin Dak Sevaks who are regularly appointed after observing all appointment formalities, and Ad-hoc payment of bonus to Casual labourers who have been conferred Temporary Status are also to be paid equivalent to allowances / wages respectively for 60 (sixty) Days for the same period.

1.1 The calculation for the purpose of payment of bonus under each category will be done as indicated below.

2. REGULAR EMPLOYEES:

2.1 Bonus will be calculated on the basis of the following formula: –

Average emoluments x Number of days of bonus

——————————————————————————–
30.4 (average no of days in a month)

2.2 The term “emoluments” for regular Departmental employees includes Basic Pay in the Pay Band plus Grade Pay, Dearness Pay, Personal Pay, Special Pay (Allowances), S.B. Allowance, Deputation (Duty) Allowance, Dearness Allowance and Training Allowance given to Faculty Members in Training Institutes. In case of drawal of salary exceeding Rs. 3500/- (Rupees Three Thousand Five Hundred Only) in any month during the accounting year 2014-15, the emoluments shall be restricted to Rs.3500/- (Rupees Two Thousand Five Hundred Only) per month only.

2.3 “Average Emoluments” for a regular employees is arrived at by dividing by twelve, the total salary drawn during the year 2014-15 for the period from 1.4.2014 to 31.3.2015, by restricting each month’s salary to Rs.3500/- per month. However, for the periods of EOL and Dies-Non in a given month, proportionate deduction is required to be made from the ceiling limit of Rs.3500/-.

2.4 In case of those employees who were under suspension, or on whom dies-non was imposed, or both, during the accounting year, the clarificatory orders issued vide Paras 1 & 3 respectively of this office order No 26-8/80-PAP (Pt-I) dated 11.6.81 and No. 26-4/87-PAP(Pt.II) dated 8.2.88 will apply.

2.5 Those employees who have resigned, retired or left service or proceeded on deputation within the Department of Posts or those who have proceeded on deputation outside the Department of Posts after 1.4.2013 will also be entitled to bonus. In case of all such employees, the bonus admissible will be as per provisions of Paras 2.1 to 2.3 above.

3 GRAMIN OAK SEVAKS (GDS)

3.1 In respect of GDS employees who were on duty throughout the year
during 2014-15, Average Monthly Time Related Continuity Allowance will be calculated taking into account the Time Related Continuity Allowance (TRCA) plus corresponding Dearness Allowance drawn by them for the period from 1.4.2014 to 31.3.2015 divided by 12. However, where the Time Related Continuity Allowance exceeds Rs. 3500/- in any month during this period, the allowance will be restricted to Rs.3500/- per month. Ex-gratia payment of bonus may be calculated by applying the bonus formula as mentioned below:

Average TRCA x Number of days of bonus

—————————————————————————
30.4 (average no. of days in a month)

3.2 The allowances drawn by a substitute will not be counted towards bonus calculation for either the Substitutes or the incumbent GDSs. In respect of those GDS who were appointed in short term vacancies in Postmen/Group “D” Cadre, the clarificatory orders issued vide Directorate letter No. 26-6/89-PAP dated 6.2.1990 and No. 26-7/90-PAP dated 4.7.91 will apply.

3.3 If a GDS has been on duty for a part of the year by way of a fresh appointment, or for having been put off duty, or for having left service, he will be paid proportionate ex-gratia bonus calculated by applying the procedure prescribed in Para 3.labove.

3.4 Those Gramin Dak Sevaks who have resigned, discharged or left service after 01.04.2014, will also be entitled to proportionate ex-gratia Bonus. In case of all such Gramin Dak Sevaks, the Ex-gratia Bonus admissible will be as per provisions of Para 3.1 above.

3.5 In case of those Grarnin Dak Sevaks who were under put off, or on whom dies-non was imposed, or both, during the accounting year, the clarificatory orders issued vide Paras 1 & 3 respectively of this office order No. 26-08/80-PAP (Pt-I) dated 11.6.81 and No.26-04/87-PAP (P.II) dated 8-2-1988 will apply.

4. FULL TIME CASUAL LABOURERS (INCLUDING TEMPORARY STATUS CASUAL LABOURERS).

4.1 Full Time Casual Labourers (Including Temporary Status Casual Labourers) who have worked for 8 hours a day, for at least 240 days in a year for three consecutive years or more (206 days in each year for three years or more in case of offices observing 5 days a week) as on 31.3.2015, will be paid ad-hoc bonus on notional monthly wages of Rs, 1200/- (Rupees Twelve hundred only). The maximum ad-hoc bonus will be calculated as below:

(Notional monthly wages of Rs.1200) x (Number of days of bonus)

——————————————————————————————————-
30.4 (average no. of days in a month)

Accordingly, the rate of bonus per day will work out as indicated below:

Maximum ad-hoc bonus for the year

—————————————–

365

The above rate of bonus per day may be applied to the number of days for which the services of such casual labourers had been utilized during the period from 1.4.2014 to 31.3.2015. In cases where the actual wages in any month fall below Rs.1200/- during the period 1.4.2014 to 31.3.2015, the actual monthly wages drawn should be taken into account to arrive at the actual ad-hoc bonus due in such cases.

5. The amount of bonus / ex-gratia payment / Ad-hoc bonus payable under this order will be rounded off to the nearest rupee. The payment of Productivity Linked Bonus as well as the ex-gratia payment and ad-hoc payment will be chargeable to the Head ‘Salaries’ under the relevant Sub-Head of account to which pay and allowances of the staff are debited. The payment will be met from the sanctioned grant for the year 2015-16.

6. After payment, the total expenditure incurred and the number of employees paid may be ascertained from all the units by Circles and consolidated figures be intimated to the Budget Section of the Department of Posts. The Budget Section will furnish consolidated information to PAP Section about the total amount of bonus paid and the total number of employees (category-wise) to whom it was disbursed for the Department as a whole.

7. This issues with the concurrence of JS&FA vide Diary No. 169/FA/2015-CS dated 07.10.2015.

8. Receipt of this letter may be acknowledged.

(Major S. N. Dave)
Assistant Director General (Estt)

Source: http://aipaea09.blogspot.in/

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CENTRAL GOVERNMENT TODAY HAS ANNOUNCED 78 DAYS BONUS TO RAILWAY EMPLOYEES.

DECISION HAS BEEN TAKEN IN A CABINET MEETING HELD TODAY AT NEW DELHI.

CEILING REMAINS SAME i.e. Rs. 3500/-.

78 days wages approved as Productivity Linked Bonus for the year 2014-15 to Railway Employees

The Union Cabinet today approved the proposal of the Ministry of Railways for payment of Productivity Linked Bonus (PLB) equivalent to 78 days wages for the financial year 2014-15 for all eligible non-gazetted railway employees. The wage ceiling for payment of PLB fixed at Rs. 3500/- per month.

Productivity Linked Bonus (PLB) equivalent to 78 days’ wages for the financial year 2014-2015 for all eligible non-gazetted Railway employees (excluding RPF/RPSF personnel).

No Change in Calculation Ceiling and Eligibility Ceiling…

The formal orders for the payment of Bonus are expected soon.

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