Bonus ceiling for workers increased

Bonus ceiling for workers increased CABINET DECIDES BS Reporters / New DelhiOctober 02, 2007 The Union Cabinet today cleared a scheme through which bonus ceilings for both private and public sector workers would be raised. The move will cost the Union government Rs 125 crore and an undisclosed sum for the private sector. This was the first meeting of the Cabinet after two weeks as the PM had been unwell. The Cabinet approved an increase in the ceiling for bonus calculation to Rs 3,500 from the current level of Rs 2,500. In order to bring more workers within the ambit of bonus, the eligibility limit for bonus has also been raised. Now, workers whose basic and Dearness Allowance is less than Rs 10,000 are eligible for bonus. Earlier, workers earning upto Rs 6,000 were covered under bonus act. To pave the way for these two hikes, the government will amend section 2(13) and 12 of the Payment of Bonus Act, 1965. Section 32(vi) of the act will be deleted to cover the employees employed through contractors on building operations, Labour Minister Oscar Fernandes announced. Bonus corrections were promised by Prime Minister Manmohan Singh in August, 2006. In a meeting with labour Unions, PM had said, I agree that current ceilings were set more than a decade ago. We will soon take a favourable decision on it. Then, at the Indian Labour Conference held in April this year, Labour Ministry again assured that it would raise the bar. However, nothing happened in the intervening period - until the Left parties announced their differences with the centre and the prospects of mid-term election imminent. The Cabinet, further, gave its approval, for signing of an agreement between India and Philippines, on the abolition of visa requirement, for holders of diplomatic and official passports. The Agreement would be signed during the visit of the President of Philippines to India on October 5, this year. The Philippines will become the 36th country with which India has signed this agreement. The acquisition of a new research vessel as a replacement of Geological Survey of Indias aging research vessel- Samudra Manthan, also got the Cabinets approval today. The vessel, for carrying out seabed surveys and exploration of non-living resources, would cost the government Rs 448 crore. Bonus ceiling for workers increased CABINET DECIDES BS Reporters / New Delhi Oct 02, 2007, 00:12 IST

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Bonus ceiling for workers increased