Increase in Bonus Eligibility and ceiling – Advisory Note by DGR advisory of Defence on Payment of Bonus to all Guards & Other Staff employed by DGR

Defence circular on increase of bonus to guards based on the Payment of Bonus (Amendment) Bill, 2015

ADVISORY ON BONUS

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

1. 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.

2. The Payment of Bonus (Amendment) Act, 2015 envisages enhancement of eligibility limit under section 2(13) from Rs.10,000/- per month of Rs. 21,000/- per month and Calculation Ceiling under section 12 from Rs.3500 to Rs.7,000 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.

3. 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 the Government to make appropriate amendments to the Payment of Bonus Act, 1965.

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

(Gangesh Kumar)

Commodore

Principal Director (Employment)

Dte Gen Resettlement

Ministry of Defence

New Delhi – 110066

File : 2112/SA/Bonus/Emp

Date : 24 Feb 16,

Place : New Delhi

Download Defence circular dated 24.02.2016

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Railway Minister Suresh Prabhu

New Delhi: Railway employees are likely to be given 78-day wages as productivity-linked bonus (PLB) for the fiscal 2014-15, the same as in the last three years, despite the financial crunch.

The proposal to give 78-day bonus to railwaymen is likely to come up tomorrow at the Cabinet meeting, sources said.

If the Cabinet decides tomorrow for a 78-day bonus then about 12 lakh railway employees will get about Rs 8897 as bonus this month, they said.

There will be about 11 lakh railway employees who will get the benefit of PLB and it is estimated to cost more than Rs 800 crores to the public transporter.

In 2011-12, 2012-13 and 2013-14 also, 78-day wages were given as PLB to railway employees.

Productivity-linked bonus is paid to railway employees each year before the Dussehra festival.

However, General Secreatry of National Railway Federation of Indian Railwaymen M Raghavaiah said “We are demanding to increase the ceiling of Rs 3,500 per month as Labour Ministry has also advocated for the hike in bonus and we have written to Prime Minister for this.

“But since the election code of conduct is in force, the government has to have special permission from the Election Commission to raise the amount.

PTI

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NFIR writes to PM Narendra Modi on 5th October 2015 regarding the announcement of bonus for Central Government employees on 1st September 2015 by the Ministry of Labour and Employment. Productivity Lined Bonus for Railway Employees is made every year, prior to Dussehra Festival. Employees throughout the Country are anxiously awaiting for Government’s decision as already promised for revision of wage eligibility and calculation ceiling limits on BONUS.

Payment of Bonus to workers — removal of eligibility and calculation ceilings-reg

NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055

No.I/10/Part V

Dated: 05-10-2015

Shri Narendra Modi,
Hon’ble Prime Minister of India,
South Block, Raisina Hills, New Delhi

Respected Sir,
Sub: Payment of Bonus to workers — removal of eligibility and calculation ceilings-reg.

Vide Press Information Bureau dated 1st September 2015, the Government of India (Ministry of Labour & Employment) has announced that the Government has been seriously considering amendment in the wage eligibility for payment of Bonus to the employees from Rs.10,000 to Rs.21,000 and equally for revising the calculation ceiling from Rs.3500 to Rs.7000 or the minimum wage notified by the appropriate Government for that category of employees, whichever is higher. Although more than a month passed from the date of announcement, the Government is yet to give decision for upward revision of wage eligibility and calculation ceiling limits.

2. In this connection, NFIR desires to bring to your kind notice that in the Railways, productivity Linked Bonus Scheme was introduced in the year 1979 by an agreement with the Railwaymen’s Federations. Pursuant to the said agreement, payment of productivity Linked Bonus (PLB) is made every year (prior to Dussehra festival) by notional calculation of salary at Rs. 3500/- per month. NFIR has been pressing the Government since long to remove calculation ceiling for ensuring payment of P.L. Bonus on actual salary of employees.

3.The employees throughout the Country are anxiously awaiting for Government’s decision as already promised for revision of wage eligibility and calculation ceiling limits on Bonus.

NFIR, therefore, requests the Hon’ble Prime Minister of India to kindly intervene and see that the commitment made on September 1, 2015 for revision of wage eligibility and calculation ceiling limits for payment of Bonus is implemented before commencement of Puja Holidays.

With regards,

Yours faithfully,
sd/-
(Dr. M.Raghavaiah)
General Secretary

Click to view the NFIR letter

Source: NFIR

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“Doubts and debates over the ceiling of Productivity Linked Bonus to Central Government employees this year continue to plague the minds.”

The word ‘Bonus’ continues to powerfully attract the employee communities.

Given once every year, bonus or honorarium could sometimes be even bigger than the monthly salaries.

But Central Government employees are given only small amounts as bonuses each year. With the highest prescribed ceiling limit fixed at Rs.3500, the bonus is calculated based on the number of days announced.

Last year, Railway employees were given bonuses of 78 days, employees of the postal department received 60 days’ bonus. Civilian employees of the defence were given a bonus of 40 days.

Employees of the public and private sectors wrongly assume that 60 days bonus implies tow months’ salary.

In simple terms, a 30 days bonus indicates a sum of Rs.3500 approximately. 60 days bonus implies that the worker will be given Rs.7000. in case of 75 days’ bonus, the worker makes Rs.8750. The amount is equal to one-fifth the salary of the employee.

In 2007, the calculation ceiling of bonus was increased from Rs.2500 to Rs.3500pm , and the eligibility limit for bonus was raised from Rs.3500 to Rs.10,000 pm. For a number of years, all federation of Central Government employees have been demanding that the calculation ceiling limit be raised from Rs.3500. You can see its impact on all the ‘Charter of Demands‘ presented by the federations to the government.

Recently, the Government requested the trade unions to withdraw their September 2 strike notice. During the negotiations that were held between the ministers and the trade union representatives, it was reported that the Government had accepted to raise the bonus ceiling limit from Rs.3500 to Rs.7000. Sources also said that the eligibility of bonus was raised from Rs.10,000 to Rs.20,000. But, no announcements in this regard were made by the Government.

Meanwhile, Shri Vijesh Upadhyay, the General Secretary of BMS, created quite a flutter with his letter. The letter mentioned the ceiling of bonus as Rs.10,000.

The Railway workers federation, NFIR, wrote a letter to the Railway Minister on September 8. The letter demanded that the ministry take action based on the bonus announcement issued by the authorized government information bureau, PIB, on September 1, 2015.

Unless the Government clarifies its stand in the bonus issue, the social media are going to overflow with false information, and some cooked up orders too. Since the information is being eagerly awaited, Central Government employees tend to get drawn to them and some are very likely to be misguided by these rumours.

Source: 7thpaycommissionnews.in

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