Bonus bill passed by lok sabha

BONUS BILL PASSED BY LOK SABHA

The Lok Sabha on 22.12.2015 passed a bill allowing doubling of wage ceiling for calculating bonus to Rs 7,000 per month for factory workers with establishments with 20 or more workers, with the benefits being applicable retrospectively from April 2014.

The The Payment of Bonus (Amendment) Bill, 2015 provides for enhancing monthly bonus calculation ceiling to Rs 7,000 per month from the existing Rs 3,500. It also seeks to enhance the eligibility limit for payment of bonus from Rs 10,000 per month to Rs 21,000 per month.
The official amendment provides that the benefits of the Act would be deemed to have come into force on April 1, 2014, instead of April 1, 2015.

Note : IamSMEofIndia opposes the retrospective effect of the Bill since it would cast additional financial burden on MSMEs as this was neither planned i.e. nor budgeted by MSMEs.