Your Ad Here

Tuesday, September 1, 2009

UPWARD REVISION OF BONUS FOR 2009 ; PAYMENT OF BONUS ACT 1965

1.         The upward revision of Bonus (Productivity linked or otherwise) to pe paid to CG employees has fallen overdue since two years. In view of 6 th CPC imlementation, the revised pay of all employees has the benchmark of Rs.10000/-(eligibility) and Rs.3500/-(ceiling limit) w.e.f. 1.1.2006.

2. Under The Payment of Bonus Act, 1965 provides for the payment of bonus to persons employed in certain establishments, employing 20 or more persons, on the basis of profits or on the basis of production or productivity and for matters connected therewith. The minimum bonus of 8.33% is payable by every industry and establishment under the section 10 of the Act. The maximum bonus including productivity linked bonus that can be paid in any accounting year shall not exceed 20% of the salary/wage of an employee under the section 31 A of the Act. Two ceilings are available under the Payment of Bonus Act, 1965. Section 2(13) which defines an employee is generally known as the eligibility limit and Section 12 is known as the calculation ceiling. The two ceilings are revised to keep pace with the price rise and increase in the salary structure. The two ceilings revised over the years are as follows:

Sl.No.     Year of Amendment    Eligibility      Calculation of ceiling
                                          (Rs. Per Month) (Rs. Per Month)

1.          1965                      Rs.1600/-           Rs. 750/-
2.          1985                      Rs. 2500/-          Rs. 1600/-     
3.          1995                      Rs. 3500/-          Rs. 2500/-
4.          2007                      Rs. 10000/-        Rs. 3500/-

NOTE ;-The eligibility limit and calculation ceiling under clause 13 of section 2 and Section 12 of the Act respectively were last revised from Rs.3,500/- to Rs.10,000/- per month and from Rs.2500/- to Rs.3500/- per month, in the year 2007 and made effective from 1st April,2006.

3.        It is, therefore, necessary that the Eligibility and Ceiling Limits of the Bonus may, upwardly be revised from Rs.10,000/- and Rs.3500/- (Old rates) be revised to Rs.15000/- and Rs.10000/- respectively for the year 2009.

No comments:

Post a Comment