By IANS
New Delhi : The central government has paved the way for more bonuses for workers in organised sectors, including those in construction, on the eve of Mahatma Gandhi’s birth anniversary.
The union cabinet presided over by Prime Minister Manmohan Singh approved Monday a proposal of labour ministry to amend the Payment of Bonus Act, 1965, said Labour Minister Oscar Fernandes.
“The proposed amendment makes construction workers and others working in the building industry and construction sites eligible to payment of bonus by their employers,” said Fernandes.
Describing this as “a gift to workers of organised sectors and those in construction industry on the eve of Mahatma Gandhi’s birth anniversary,” Fernandes said he proposed to amend Section 2(13) of the Act to raise eligibility limit for payment of bonus from salary or wage of Rs.3,500 to Rs.10,000 per month.
“So far, only those whose salary was less than Rs.3,500 were eligible for bonus. That limit will now be increased to Rs.10,000,” said the minister.
Simultaneously, a proposal to amend Section 12 of the Act will enhance the ceiling for calculation from salary or wage of Rs.2,500 to Rs.3,500 per month, said Fernandes.
A third amendment would entail deletion of section 32(vi) of the Act to cover employees employed through contractors on building operations, said Fernandes.