Government of India
Ministry of Labour & Employment
Labour Minister Sh Narendra
Singh Tomar calls for ‘balanced approach’ towards labourers
The Union Minister of Labour & Employment, Steel and Mines, Shri
Narendra Singh Tomar called upon industry and trade unions to strike a balance
in dealing with labour issues. Chairing a tripartite consultation meeting on
Amendment to the Payment of Bonus Act, 1965 here today, he said that there is a
need to maintain a balanced approach towards the welfare of labourers.
Shri Tomar said that the Government is committed to protect the interests of
labourers so that they remain at the heart of country’s growth story. In his
address, the Minister said, “We want to increase the purchasing power of the
labourer. When production from industrial units increase, the purchasing power of
the labourer also increases”.
The Minister informed that eligibility limit and calculation ceiling under
Sections 2(13) and 12 of the Act, were last revised from Rs. 3500/- to Rs.
10000/- p.m. and Rs 2500/- to Rs. 3500/- respectively in the year 2007 and made
effective w.e.f 1.4.2006. He said, “I am aware that a long time has passed
since then and these ceilings have lost their relevance presently”.
Shri Tomar said that the present system of two wage ceiling for reckoning
entitlement should be suitably enhanced from time to time. In view of changing
scenario and price rise, the Minister asked the participants to deliberate upon
the Ministry’s proposal to amend the Payment of Bonus Act, 1965, by enhancing
the eligibility ceiling under section 2(13) of the Act form Rs. 10,000/- per
month to Rs. 18,000/- per month and calculation ceiling under section 12 from
Rs. 3500/- per month to Rs. 6000/- per month. He said that this was recommended
by the Standing Committee on Labour in its 46th Session held on 31st January
The Payment of Bonus Act was enacted in the year 1965 (25th September, 1965) to
provide for the payment of bonus to persons engaged in certain establishments
on the basis of profits or on the basis of production and for matters connected
therewith. The Act is applicable to whole of India.
The Payment of Bonus Act, 1965 provides for payment of bonus to the employees
of ‘factories’ and ‘establishments’ employing 20 or more persons, excluding
some categories of employees in Life Insurance Corporation, Seamen, Dock
Workers, University employees, as per section 8 of the Act, every employee
shall be entitled to be paid by his employer in accounting year, bonus, in
accordance with the provisions of this Act, provided he has worked in
establishment for not less than thirty working days in that year.
Present on the occasion were Secretary, Ministry of Labour and Employment, Smt.
Gauri Kumar, senior officials of various central ministries, representatives of
the State Governments, SCOPE, Industries and central trade unions.
Labels: Bonus, Shri Narendra Singh Tomar