Thursday, 29 September 2016

Fixation of pay and grant of increment in the revised pay structure - clarifications

Date : 30.9.2016

Fixation of pay and grant of increment in the revised pay structure - clarifications



Revision of interest rates for Small Savings Schemes

Date : 30.9.2016

Revision of interest rates for Small Savings Schemes


Grant of enhanced bonus to GDS and payment of revised wages of casual labourers

Date : 29.9.2016

Grant of enhanced bonus to GDS and payment of revised wages of casual labourers – agitational programmes culminating in two days nationwide strike on 9th & 10th November 2016 – Serving of notice – regarding.





Wednesday, 28 September 2016

Senior Citizen Schemes:

Date : 29.9.2016

Senior Citizen Schemes: Cabinet gives ex-post facto approval to Varistha Pension Bima Yojana, 2003 and Varistha Pension Bima Yojana, 2014

Press Information Bureau
Government of India
Cabinet
28-September-2016 15:00 IST
Cabinet gives ex-post facto approval to Varistha Pension Bima Yojana, 2003 and Varistha Pension Bima Yojana, 2014

The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has given its ex-post facto approval for the Varishtha Pension Bima Yojana (VPBY) 2003 launched on 14th July, 2003 and Varistha Pension Bima Yojana (VPBY) 2014 launched on 14th August, 2014. The Cabinet also granted approval for expenditure incurred on subsidy amount released to LIC during the period of 2003-04 to 2014-15 for VPBY, 2003 and approval to incur expenditure on VPBY, 2003 and 2014 from the financial year 2015-16 onwards.

The Schemes are implemented through Life Insurance Corporation (LIC) of India, and the difference between the actual yield earned by LIC on the funds invested under the Scheme and the assured return committed by the Government is paid as subsidy to LIC.

Both are pension schemes intended to give an assured minimum pension to the Senior Citizens based on an assured minimum return on the subscription amount. The pension is envisaged until death from the date of subscription, with payback of the subscription amount on death of the subscriber to the nominee.

Both the schemes VPBY - 2003 and VPBY - 2014 are closed for future subscriptions. However, policies sold during the currency of policy are being serviced as per the commitment of guaranteed 9% return assured by the Government under the schemes. VPBY-2014 was open from 14th August, 2014 to 14th August, 2015. As on 31sl March, 2016, a total number of 3,17,991 annuitants are being benefited under VPBY 2014. Similarly, a total number of 2,84,699 annuitants are being benefited under VPBY- 2003 as on 31st March, 2016.

Payment of Productivity Linked Bonus (2015-2016) – Railway Board Order

Date : 29.9.2016


Payment of Productivity Linked Bonus (2015-2016) – Railway Board Order



Duties of Mail Overseer

Date : 29.9.2016

Duties of Mail Overseer - Verification of NREGS pass books



Employees’ Pension Scheme, 1995- Weightage of Service

Date : 28.9.2016


Benefit of two years weightage of service to the members with 20 or more years of Pensionable Service under Employees’ Pension Scheme, 1995


EPFO letter dated 20-09-2016


EMPLOYEES’ PROVIDENT FUND ORGANISATION
(Ministry of Labour & Employment, Govt. of India)
Head Office
Bhavishya Nidhi Bliawan, 14, Bhikaji Cama Place, New Delhi - 110 066.

Letter No. Pension-I/3(4)16/2/15850
Dated 20 Sep 2016

To,
All ACCs (Zonal Office)
All Regional P.F. Commissioner (In-Charge of Regions)
All Officers - In - Charge of SROs

Sub : Benefit of two years weightage of service to the members with 20 or more years of Pensionable Service under Employees’ Pension Scheme, 1995 - reg.

Sir,

This is in continuation of Head Office letter no. Pension-l/3l4)16/7915 dated 25.07.2016 on the above subject.

Through the above communication it was conveyed in the penultimate para for granting the benefit of two years weightage henceforth as well as for the cases settled, Pensionable service will include service rendered under EPS 1995 as well as erstwhile Family Pension Scheme 1971 to fulfill the condition of 20 year or more Pensionable Service.

However, various communications are being received from many pensioners for grant of two year weightage on completion of 20 years pensionable service, which are addressed to the concerned RO/SROs with the copy endorsed to Head Office.

Regarding this it is advised that in the light of above mentioned communication necessary action may please be taken to revise the pension of those pensioners who qualified for it, irrespective of the fact whether they have submitted any representation or not. In case the revision of the pension may take some more time, a suitable reply may be sent to the applicant that the matter is under process and he/she will be intimated the position after doing the needful in the said matter. PRO in the facilitation centre may also be advised to explain the matter to the pensioners approaching office with such grievance/query.

Yours faithfully,

(S.K. Thakur)
Add. Central P.F. Commissioner-I(Pension)

Cabinet approves Productivity Linked Bonus to railway employees

Date : 28.9.2016

                Press Information of Bureau
                     Government of India
                                                  Date : 28.9.2016


Cabinet approves Productivity Linked Bonus to railway employees 

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has given its approval to pay Productivity Linked Bonus (PLB) equivalent to 78 days wages to eligible non-gazetted railway employees (excluding RPF/RPSF personnel) for the financial year2015-16. The approval entails a financial implication of approximately Rs.2090.96 crore.

Payment of PLB would result in motivating a large number of railway employees to improve the performance of the Railways and enhance the productivity levels further besides maintaining industrial peace.

The payment of this Bonus to eligible Railway Employees will be made before Dussehra/Puja holidays. 

FNPO ,NUGDS & NFPE ,NFPE GDS AGITATION PROGRAMME ON GDS BONUS

Date : 28.9.2016

FNPO ,NUGDS & NFPE ,NFPE GDS AGITATION PROGRAMME ON GDS BONUS



Revision of inspection questionnaire for MGNREGS

Date : 28.9.2016

Revision of inspection questionnaire for MGNREGS at Branch Post Office and Sub Post Office.

Recruitment of Casual workers & persons on daily wages - DoP order.

Date : 28.9.2016

Recruitment of Casual workers & persons on daily wages - DoP order.

Latest News on GDS Bonus Ceiling

Date : 28.9.2016

Latest News on GDS Bonus Ceiling

Our Asst.General Secretary NAPE Group - C ,Sri.B.Shiva Kumar today met Secretary ,GDS Pay Committee Sri.T.Q.Mohammad in New Delhi and discussed about the enhanced Bonus of GDS.

Secretary told him that Pay Committee positively recommonded to the Directorate and assured the enhanced Bonus to GDS.

"GDS Pay Committee yesterday recommonded the  enhanced Bonus to GDS"

Tuesday, 27 September 2016

APOnline Downtime of Web portal and POTDs

Date : 28.9.2016

APOnline Downtime of Web portal and POTDs


As informed by AP Online, POTDs and DBT portal will not be accessible from 21.10.2016 / 0900hrs to 23.10.2016 / 0900hrs. 

Supplementary Postman exam for the LGO vacancies.

Date : 28.9.2016

Supplementary Postman exam for the LGO vacancies.



Roll out of RICT

Date : 28.9.2016


Roll out of RICT





Click Here to view the schedule of RICT roll out in A.P Circle.  In Kurnool Region, the following divisions are selected for RICT roll out.
1. Anantapur Division
2. Hindupur Division
3. Kurnool Division.


Expected month of roll out of RICT is October'2016

Enhancement of minimum service for promotion to the cadre of ASP

Date : 28.9.2016

Enhancement of minimum service for promotion to the cadre of ASP

Counting of the period of induction training for benefit of promotion under the TBOP/BCR schemes - Clarifications

Date : 28.9.2016


Counting of the period of induction training for benefit of promotion under the TBOP/BCR schemes - Clarifications
 

APPENDIX 13  - POSB VOL -IV
MISCELLANEOUS STAFF MATTERS RELATING TO S.B.C.O.,
PAIRING AND INTERNAL CHECK ORGANISATION


[D.G Posts letter No. 22-6/2000-PE.I dated 17.5.2000]
37. Regarding counting of the period of induction training for benefit of promotion under the TBOP/BCR Schemes :- The issue regarding counting of the period of induction training spent by the employees of this Department for the benefit of promotion under the TBOP/BCR schemes has been under consideration of this office for some time. After consultation with the Department of Personnel and Training, it has now been decided that the period of induction training may also be counted for the benefit of promotion under the above schemes. However, past cases decided otherwise would not be covered by the above orders. This issue with the concurrence of Integrated Finance Advice vide their Diary No. 378/FA/2000 dated 25.7.2000.
[D.G Posts letter No. 44-47/98-SPB.II dated 3.8.2000]

38. Counting of the period of induction training for benefit of promotion under the TBOP/BCR schemes-clarifications:-(1) I am directed to refer to this Department's letter of even number dated 3.8.2000 [Para 37] on the above subject. References have been received from many Circles seeking clarifications on the above orders. The matter has been examined in detail in consultation with the Integrated Finance Wing of this Department and the position is clarified as under.

(2) This issues with the concurrence of Integrated Finance Wing vide their Diary No. 320/FA/2001 dated 17.7.2001.

               Points raised
Clarification
(1) What will be the date of effect of the above order,
The cases decided prior to 3.8.2000 would not be covered by the order dated 3.8.2000.
(2) Whether the departmental candidates will also get the benefit of counting of induction training period prior to their promotion as Time scale clerks for the  benefit of promotion under  benefit of promotion under  TBOP/BCR ?                                                                                           
DO P&T has clarified that since the period of induction training is counted for the purpose of increments and qualifying       service for departmental examination, it would also count for the purpose of promotion under the TBOP/BCR schemes.
Therefore, it is clarified that the period of induction training in respect of departmental candidates would also count for the purpose of promotions under TBOP/BCR schemes provided that such training period is obligatory for the departmental candidates in respect of the cadre to which they are to be promoted and they are to be promoted immediately on completion of such induction training period and also such         training period is counted for increment in the promoted cadre.
(3) If the junior officials get               promoted earlier than the   seniors as per the orders   dated 3.8.2000, whether the   seniors can claim benefit of       promotion under the above scheme from the date of promotion of the junior officials? 
                                                      
As per letter No. 22-6/2000-PE.I dated 17.5.2000, officials would be promoted under the TBOP/BCR schemes only after completion of qualifying service. Therefore, the question of senior claiming benefit with reference to the juniors etc. does not arise.  

NAPE Group - C, 22 nd All India Conference

Date : 27.9.2016


National Association of  Postal Emplyees Group - C 

22 nd All India Conference at Tiruvananthapuram, Kerala Circle

        From 5.2.2017 to 7.2.2017






Revision of Allowances of GDS

Date : 27.9.2016

Revision of Allowances of GDS
Postal Volume IV, 
Chapter I,Part III 

Interim review as necessiatated due to revision of norms or on account of any significant variation of workload of offices may be undertaken as and when found necessary.


The page published below.





Counting of pre- appointment training for direct recruit PA/SA for MACP's - Reg.

Date : 27.9.2016

Counting of pre- appointment training for direct recruit PA/SA for MACP's - Reg.


Monday, 26 September 2016

Nomination of Master Trainer for RICT Rollout

Date : 27.9.2016

Nomination of Master Trainer for RICT Rollout



TELANGANA POSTAL CIRCLE INAUGURATION

Date : 26.9.2016

TELANGANA POSTAL CIRCLE INAUGURATION - 
RAVINDRABHARATHI AUDITORIUM,HYDERABAD






Posting of Medical Officers to the Postal Dispensaries - order date 23.09.2016

Date : 26.9.2016


Posting of Medical Officers to the Postal Dispensaries - order date 23.09.2016



Posting of Medical Officers to the Postal Dispensaries - order date 23.09.2016

To view please Click Here.

Sunday, 25 September 2016

New Pension Scheme: Advisory Fee

Date : 26.9.2016

New Pension Scheme: Advisory Fee under PFRDA (Retirement Adviser) Regulations 2016



PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutab Institutional Area,
Katwaria Sarai, New Delhi – 110 016.

PFRDA/36/R&S/RA/4
22nd September, 2016

To

All Stakeholders in the National Pension System

Subject: Introduction of “Advisory fee” under Regulation 15 of PFRDA (Retirement Adviser) Regulations, 2016.

1. This has reference to the Regulation no.15 of the PFRDA (Retirement Adviser) Regulations, 2016. Wherein the on-boarding fee of Rs.120/- and a fee of Rs.20/- per transaction or a maximum of Rs.100/- per annum, for subsequent services, have been stipulated.

2. Further to the abovementioned charges, it has been decided by the Authority that and advisory fee of 0.02% may also be charged from any existing subscriber, on their assets under management (AUM) of NPS or any other scheme regulated by PFRDA, on the date of advice, subject to a minimum of Rs.100/- and maximum Rs.1000/- per annum, for providing advice to the subscribers.

3. The scope of such advice being provided by the retirement advisers in any manner, either oral or in writing to the subscribers will be limited to asset allocation and choice of a Pension Fund Manager (PFM) for their financial assets under NPS or any other scheme regulated by PFRDA.

4. The advisory fee can be charged by Retirement Adviser (RA) only when subscriber has signed an agreement with the RA for providing advice, wherein the lower and upper limits of advisory fee, as specified by the Authority may be incorporated. No advisory fee shall be charged at the time of onboarding of the subscriber along with onboarding fee of Rs.120/-

5. The circular is being placed on PFRDA website at http://www.pfrda.org.in.

Sd/-
Ashish Kumar
General Manager

Source: www.pfrda.org.in [Click to view/download]

Post Audit of 7th Pay Commission fixation of pay/arrear claims should be completed with in 3 months

Date : 26.9.2016


Post Audit of 7th Pay Commission fixation of pay/arrear claims should be completed with in 3 months - PCA(FYS) letter regarding Government Notification of 7th Central Pay Commission Recommendations Fixation of pay and arrears

OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS (FYS)
PAY TECH SECTION
10-A, S.K. BOSE ROAD, KOLKATA-700001

No. Pay/Tech-01/7thCPC I
Dated: 21/09/2016

(All Cs FA)
Subject: Government Notification of 7th Central Pay  Commission Recommendations Fixation of pay/arrears.

Ref: (i) This office circular of even No. dated 11 Aug, 2016.

Please refer to this office Part I office order No. AT/02 circulated vide No. Pay/Tech 01 /7th CPC I dated 11.08.2016 through which a copy of CGDA New Delhi No. AT/II/2701/0rders dated 10 Aug, 2016 has been forwarded for necessary action.

2. It has been stated therein to ensure completion of post audit of fixation of pay/arrear claims within 3 months and the work relating to post audit should be monitored at PCsDA/CsDA level by instituting suitable reporting system for watching the progress of work. A Monthly Report in this regard in a format prescribed therein is required to be furnished to Headquarters office so as to reach by 15th of every month. The first report showing the position as on 31.08.2016 was due to reach HQrs office by 15th Sep, 2016. Kindly confirm its timely submission to HQrs office. Also please forward a copy of the said report to this office for our record & reference.

3. Please ensure submission of the report for the subsequent months within scheduled date with a copy endorsed to this office.

4. Please acknowledge receipt.

Sd/-
Astt. Controller of Accounts (Fys)

Source : http://pcafys.gov.in

Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

Date : 26.9.2016

Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure


Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

The Sources Close to the Ministry of finance informed that there is proposal to Pay 1% DA from July as an interim Measure.It is said that the Central Government has not yet decided about the DA rates in Revised Pay scale.
Sources close to Finance Ministry told that the initial installment of DA to central government employees on the revised pay structure w.e.f 1.7.2016 is under consideration. Mean time there is a proposal to pay the DA from July 2016 at the rate of 1% to all CG Staffs. It will be a shocking news for CG Staff, since they are already expecting 2 to 3% DA from July 2016.

PRU is asked to submit Financial Implication of 1% DA

But the fact is the Department of Expenditure has directed the PRU of the Finance Ministry to furnish the details of additional Financial Implications for 1% increase of DA with effect from 1.7.2016 on the revised Pay Structure.
Further the Pay Research Unit has been requested to furnish financial implications for the Period of July 2016 to February 2017 on account of granting 1% DA from July 2016 to all central government employees including Armed Forces and UT Employees.
According to the above information, it is believed that announcement of 1% DA for July installment may be made any time soon.

Good News For Railwaymen

Date : 26.9.2016

Good News For Railwaymen: Centre May Announce 78-Day Wages As Bonus

Ahead of the festive season, railway employees are likely to get 78-day wages as bonus this year, the same as in the last four years despite the financial crunch.
We have demanded 78-day wages as productivity-linked bonus (PLB) for railway employee this year and expecting the government to declare the same next week,” National Federation of Indian Railwaymen General Secretary M Raghavaiah told Press Trust of India.
Productivity-linked bonus is paid to about 12 lakh railway employees each year before the Dussehra festival.
Mr Raghavaiah said the 78-day wage is expected to be around Rs. 18,000 per employee. In 2011-12, 2012-13, 2013-14 and 2014-15 also, 78-day wages were also given as PLB to railway employees.
Facing a shortfall of about Rs. 10,000 crore in the earnings due to slowdown in loadings and drop of passengers in short train journey, the railways will get the cabinet approval for the 78-day bonus proposal next week.
The bonus decision is expected to cost the railways about Rs. 2000 crore.
All-India Railwaymen’s Federation General Secretary Shiv Gopal Mishra said the bonus is expected to motivate the employees to improve the financial position of the public transporter.
Mr Mishra said, “Since the PLB ceiling has been revised to Rs. 7000 from Rs. 3500, we expect each employee will get double the amount as against the last year’s bonus.”
Last year, the minimum bonus paid was Rs. 8,975 per employee.
PLB covers all non-gazetted railway employees (excluding RPF/RPSF personnel) spread over the entire country.
Source : NDTV

Saturday, 24 September 2016

Clarification on SDBS payment to GDS

Date : 25.9.2016

Clarification on SDBS payment to GDS



Click here to view the clarification received from Directorate on payment of SDBS amount to GDS.

MOST URGENT

Date : 25.9.2016

                         MOST URGENT


Enhancement of ceiling of bonus order issued to our Departmental employees on 02.09.2016.  On 03.09.2016 our NUGDS General Secretary sent letter to the Department of post to extent the enhancement of ceiling of bonus to GDS employees. There was no response from Department. On 15.09.2016 our Federation sent a letter to the Secretary demanding enhancement of ceiling of bonus to GDS. On 16.09.2016 Postal JCA sent letter to the Secretary on the same.

Meanwhile some of the colleagues post the news in their web site on 15.09.2016 stating that the enhancement of ceiling of bonus to GDS “File has been sent to JS&FA and after approval from him will be sent to Finance Ministry for sanction”.

, again now they are saying the file is referred to GDS committee, what happened in between 15.09.2016 to 23.09.2016 we do not know. Now they are announcing dharna programme , We don’t want comment more on this issue now.

 FNPO representatives will meet concerned officers next week. Till such time we don’t want announce any agitation programme . GDS colleagues are requested to understand the situation. FNPO will not aggravate any issues under any circumstances, at the same time we will not compromise core issue at any cost.   

D.Theayagarajan

S/G FNPO

Understanding Minimum Wages and Bonus

Date : 24.9.2016

Understanding Minimum Wages and Bonus


Press Information Bureau
Government of India
Ministry of Labour & Employment

24-September-2016 10:35 IST 

Understanding Minimum Wages and Bonus

*Bandaru Dattatreya
A minimum wage is the lowest remuneration that employers may legally pay to workers or it is the price floor below which workers may not sell their labour.

The concept of minimum wages first evolved with reference to remuneration of workers in those industries where the level of wages was substantially low as compared to the wages for similar types of labour in other industries. As far back as 1928, the International Labour Conference of International Labour Organization, at Geneva, adopted a draft convention on minimum wages requiring the member countries to create and maintain a machinery whereby minimum rates of wages can be fixed for workers employed in industries in which no arrangements exist for the effective regulation of wages and where wages are exceptionally low. Also, at the Preparatory Asian Regional Labour Conference of International Labour Organisation held at New Delhi in 1947 and then at the 3rdsession of the Asian Regional Labour Conference, it was approved that every effort should be made to improve wage standards in industries and occupations in Asian Countries, where they are still low. Thus, the need of a legislation for fixation of minimum wages in India received an impetus after World War II, on account of the necessity of protecting the interest of demobilized personnel seeking employment in industries. 

The justification for statutory fixation of minimum wage is obvious. Such provisions which exist in more advanced countries are even necessary in India, where workers’ organizations are yet poorly developed and the workers’ bargaining power is consequently poor. 

To provide for machinery for fixing and revision of minimum wages a draft Bill was prepared and discussed at the 7th session of the Indian Labour Conference in November, 1945. Thereupon the Minimum Wages Bill was introduced in the Central Legislative Assembly. The Minimum Wages Bill having been passed by the Legislature received the assent on 15th March, 1948. It came on the Statute Book as the Minimum Wages Act, 1948. 

The Act provides for fixation by the appropriate Governments of minimum wages for employments covered by Schedule to the Act.  The Central Government is the appropriate Government in respect of 45 scheduled employments in the Central Sphere. The minimum wages fixed for Central sphere are applicable to the scheduled employments in the establishments under the authority of Central Government, railway administrations, mines, oil-fields, major ports or any corporation established by a Central Act. Employments other than the scheduled employment for Central Sphere come under the purview of the State Government and accordingly State Government wages are applicable in such employments.  The minimum wages for Central Sphere are revised from time to time based on the increase in Consumer Price Index effective from April and October. 

According to Section 3(1)(b) of the Minimum Wages Act, 1948, “the appropriate government shall review at such intervals, as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates if necessary. 

The norms recommended by the Indian Labour Conference, in 1957, fox fixing the minimum wages are: (a) consumption units for one wage earner; (b) minimum food requirements of 2700 calories per average Indian adult; (c) clothing requirements of 72 yards per annum per family; (d) rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme; and (e) fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage. 

In 1991, the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage. 

The Act envisages appointment of an Advisory Board, by the appropriate Government, for the purpose of advising the appropriate Government in the matter of fixing and revising minimum rates of wages. 

The Central Government revises the wages in the scheduled employments from time to time in accordance with the provisions of the Minimum Wages Act, 1948. Draft Notifications for all the Scheduled Employments in the Central Sphere were issued on 1st September, 2016 simultaneously, in fact for the first time. The basic rate of minimum wages for an unskilled worker in the scheduled employment other than agriculture has been proposed at Rs.350 in Area ‘C’ from the current minimum wage (basic wage + variable dearness allowance) of Rs.246 resulting in an increase of about 42%. The basic rate of minimum wages for an unskilled worker in the scheduled employment “agriculture” has been proposed at Rs.300 in Area ‘C’ from the current minimum wage (basic wage + variable dearness allowance) of Rs.211 resulting in an increase of about 42%.

The proposed revision in the rates of basic minimum wages would indeed provide much needed solace to the labour fraternity.

Bonus

Bonus payment is an extra payment   given for doing one's job well also known as  performance-related pay or pay for performance.

The practice of paying bonus in India appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917.  In certain cases of industrial disputes demand for payment of bonus was also included.  In 1950, the Full Bench of the Labour Appellate Tribunal evolved a formula for determination of bonus.  A plea was made to raise that formula in 1959.  At the second and third meetings of the eighteenth Session of Standing Labour Committee (G.O.I) held in New Delhi in March/ April 1960, it was agreed that a Commission be appointed to go into the question of bonus and evolve suitable norms.  A Tripartite Commission was set up by the Government of India to consider in a comprehensive manner, the question of payment of bonus based on profits to employees employed in establishments and to make recommendations to the Government.  The Government of India accepted the recommendations of the Commission subject to certain modifications.  To implement these recommendations the Payment of Bonus Act, 1965 was enacted, which came into force on 25-9-1965.

The objective of the Payment of Bonus Act, 1965 is to provide for the payment of bonus to the persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matter connected therewith.

It applies to (i) Every Factory; and (ii) Every other establishment in which 20 or more persons are employed on any day during an accounting year subject to the exemptions under section 32. Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year. While the minimum bonus is 8.33% of the salary or wage earned by the employee during the accounting year, the maximum bonus is 20% of such salary or wage.

Two ceilings are available under the said Act generally known as eligibility limit and calculation ceiling respectively. Clause 13 of Section 2 of Payment of Bonus Act, 1965 defines an employee based on salary or wage per mensem. This is usually taken as the “eligibility limit” for computation of bonus. Similarly, Section 12 of the Payment of Bonus Act, 1965 provides for calculation of bonus of an employee based on salary or wage per mensem. This is known as “calculation ceiling”. 

The two ceilings are revised from time to time to keep pace with the price rise and increase in the salary structure. At present, the calculation ceiling has been enhanced to Rs.7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher and the eligibility limit has been enhanced to Rs.21,000/-.

Due to this revision, additional 55 lakh workers would be benefited.  This would indeed, be a good gesture on the part of the Government towards the labour fraternity.

Author : Minister of State (Independent Charge) Labour and Employment, Government of India