Bonus Arrears to be Paid on Account of Increase in Calculation Ceiling with Effect from April 2014

Bonus Arrears to be Paid on Account of Increase in Calculation Ceiling with Effect from April 2014

Payment of Bonus (Amendment) Bill 2015 to increase the Bonus Calculation Ceiling and eligibility ceiling has been Passed in Lok Shabha yesterday.

As per the provisions of Bonus bill the Bonus Calculation ceiling has to be raised from 3500 to 7000 and eligibility ceiling of wage from 10000 to 21000 per month. Earlier Cabinet gave its approval for this Bonus bill and said it will be come into effect from 1.4.2015 after passed in Parliament.

Now Labour Minister Bandaru Dattatreya said while moving an official amendment to the Bill, ”The Prime Minister spoke to me and asked why should the benefits of this Act should accrue to workers from 2015, it should made available from the April 2014″.

It is really very good news for entire working class, since it is coming into force with effect from 1st April 2014. Due to this retrospective effect of Bonus Act from 1.4.2014, double the amount of Bonus has to be paid for the year 2014-2015.

The Bonus amount for 2014-2015 was Calculated as per the Calculation ceiling of Rs.3500 and paid before Dhasara/ Durga Pooja and Diwali. So Bonus arrears have to be paid on account of increase in calculation ceiling and eligibility ceiling. Soon after the Bill passed in Rajya Sabha, necessary Order will be issued by Finance Ministry after publishing gazette Notification for the amendment in Bonus Act.

Source: www.gservants.com