Bills to fix min wage,hike cap for bonus likely in Bud session

Bills to fix min wage,hike cap for bonus likely in Bud session

Government may bring two bills in budget session seeking to fix a benchmark for minimum wages for all types of employments and make more employees eligible for bonus.

"An inter-ministerial group meeting was held today to finalise amendments to Payment of Wages Act 1948 and Payment of Bonus Act 1965. It is expected that government will firm up amendments to two the Acts by the first week of February," a source said.

"The government is likely to introduce the two amendment bills in the forthcoming budget session as the consultation process is almost over," the source added.

Under the wage law, the government wants to fix statutory National Floor Level Minimum Wage for all employments across the States/UTs.

Besides, it is proposed to cover all employments under the Minimum Wages Act.
The then government had mooted these amendments in June 2005.

The bill to amend Payment of Bonus Act will make all employees, who are earning up to Rs 18,000 a month eligible for bonus of up to Rs 6,000 a month.

At present, employees drawing salary or wage not exceeding Rs 10,000 per month are eligible for bonus with a ceiling of Rs 3,500 per month.

The Act provides that factories and establishments employing 20 or more persons should pay bonus to employees in every accounting year, provided the worker has worked in the firm for at least 30 days.

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