Who: Amendments to Payment of Bonus Act 1965 hiking bonus for Industrial workers
What: Approved by Union Cabinet
When: 21 October 2015
The Union Cabinet chaired by Prime Minister Narendra Modi on 21 October 2015 approved amendment in the Payment of Bonus Act 1965 for the Industrial workers.
According to the decision
• The bonus ceiling under the legislation was increased from 3500 rupees to 7000 rupees per month.
• The wage ceiling for getting bonus has also been increased from existing 10000 rupees per month to 21000 rupees per month.
The decision will make workers eligible for the reward. The amendment bill concerning this will be tabled in the winter session of Parliament likely to start in November 2015.
The amendment in the Act to increase wage ceiling and maximum amount of bonus was one of assurances given by the Union Government after 10 Central Trade Unions went on one-day strike.
Payment of Bonus Act, 1965
The Payment of Bonus Act, 1965 is the principal act for the payment of bonus to the employees which was formed with an objective for rewarding employees for their good work for the organization. It is a step forward to share the prosperity of the establishment reflected by the profits earned by the contributions made by capital, management and labour with the employees.