PAYMENT OF BONUS ACT, 1965 & AMENDMENTS THEREOF
- Minimum bonus 8.33% of the salary/wage of an employee.
- Maximum bonus including productivity linked bonus shall not exceed 20% of the salary/wage of an employee.
- Previous amendment of 2007 was notified on 13 December 2007 and made effective from 1st April, 2006.
- Minimum bonus of 8.33% of (Rs. 3500/- X 12= Rs. 42,000/-) is approximately Rs. 3500/-.
- 20% of above referred Rs. 42,000/- is Rs. 8,400/-. However, the limit is given as Rs. 8,300/-.
Details of amendments to the Payment of Bonus Act, 1965:
a) The output for a year is reckoned by the equated net tonne kilometres by adding together:-
i) Total goods revenue net tonne kilometres.
ii) Non-suburban passenger kilometres converted by a factor of 0.076.
iii) Suburban passenger kilometres converted by a factor of 0.053.
b) The input is taken as the non-gazetted staff strength (excluding
RPF/RPSF personnel), increased by the incremental increase/decrease in
capital (over average of last three years) during the year.
C) Highest PLB amount of 78 days’ wages was paid for the financial years 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15.
d) The wage calculation ceiling prescribed for payment of PLB to the
eligible non-gazetted railway employees is 3500/- p.m. The maximum
amount payable per eligible railway employee is Rs. 8975 for 78 days.
- Amount paid as bonus never shown meaningful increase over last 15 years.
- Only between 2006-07 and 2007-08 there was a visible increase in bonus amount.
- If bonus is linked with inflation at the rate of average 12% per
year from 2001-02, it should have become Rs.24000 now, even without
considering any productivity improvement.
- Bill passed in Lokshaba is a very late action taken by the Government.
- Railways should not try to put any rider on this very late action.
bonus bill,wage calculation ceiling prescribed for payment of PLB to
non-gazetted railway employees will be increased to 7000/- p.m.
eligible railway employee can also go upto Rs.21,000. But, Railway Board
is having proposals to revise the calculation formula for PLB which may
reduce the expected benefit.
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