Important guidelines and illustrations are given in Annexure-I, II and III

Annexure-I
1. Bonus is payable to those employees whose salary does not exceed Rs.21,000/- per month. In other words no Bonus is payable to those employees whose salary exceeds Rs.21,000/- per month. Please see the examples given in the Annexure-II.

2. Every employee (including temporary employees) who had worked in the bank for not less than 30 working days during the financial year is eligible to receive the Bonus.

3. The maximum amount of Bonus payable to any eligible employee should be only Rs.7,000/- where an employee has worked for all 365 days.

4. For the purpose of computing the number of days during which the employee worked in the accounting year, he/she will be deemed to have worked on the days on which he/she has been on leave with salary / wages.

5. The minimum amount of Bonus payable to any employee is stipulated as Rs.100/- or the actual eligibility @ 8.33% whichever is higher.

6. In case, if the earning of an employee is reduced during a month on account of loss of pay, Bonus payable for that particular month should be calculated proportionately. An illustration is given in the Annexure-III

7. An employee will be disqualified for receiving Bonus if he is dismissed from the Service of the Bank due to (a) fraud (b) riotous or violent behaviour within the premises of the Bank of (c) theft, misappropriation or sabotage of any property of the Bank. In all such cases the matter should be referred to Human Resources Department (IR), Head Office for necessary instructions.

8. In case of employees who were placed under suspension / dismissed / discharged for misconduct prior permission from our Human Resources Department (IR), Head Office, may be sought before making any payment towards Bonus.

9. In respect of those employees who are eligible for payment of Bonus for the year 2016-17, but deceased, the Bonus amount shall be paid to their legal heirs provided a claims is preferred within one year form the date of this circular. These cases should also be referred to Human Resources Department (IR), Head Office.

10. No advance against Bonus should be made pending receipt of salary particulars from other branches.

11. Leave encashment is not to be treated as salary/wages for the payment of Bonus.

12. Branches claiming Bonus pertaining to earlier years should route their claims through their respective Zonal offices duly substantiating the reasons for delay in making payment. Zonal office should confirm that the amount is not reimbursed to branches earlier. The amount may be Claimed separately and it should not be clubbed with the bonus amount related to this year.

13. Special points requiring specific personal attention of salary disbursement authorities and contravention of which will attract action against them.
• Bonus register in form “C” should be maintained for each year in which all the particulars of each employee are to be filled without leaving any column blank.
• Acquaintances should be obtained at the time of payment of Bonus from all the employees to whom Bonus is paid.
• At the time of inspection by Labour Enforcement Officer, all the relevant records should be produced before the concerned for verification.
• As per the payment of Bonus rules 1975, every branch shall send an annual return in Form “D” to the concerned Labour Enforcement Officer (Central) so as to reach within 30 days of payment of Bonus. A proforma of form “D” is given in the Annexure. All the branches are advised to note the same and submit the annual return without fail.
Branch Managers will be personally held responsible for non-submission of this return.
Please note that all Bonus payments must invariably be claimed from Head Office. Please do not debit Profit & Loss A/c – Bonus at the Branch level.

ANNEXURE –II
Example: 1

An employee has drawn salary of Rs.15800/- for April 2016, Rs.16500/- for May, Rs.17300/- for June, Rs.18300/- for July and August 2016, Rs.19700/- for September and October 2016, Rs.20700/- for November 2016 and from December 2016 to March 2017 Rs.21200/-. Bonus payable to the employee is calculated as under.

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No.7/4/2014-E-IIIA
Government of India
Ministry of Finance
(Department of Expenditure)

North Block, New Delhi
Dated the 29th August, 2016

Office Memorandum

Subject: Grant of Productivity Linked Bonus (PLB) and non-productivity Linked Bonus (Ad-hoc bonus) in case of Central Government employees for the accounting year 2014-15 – enhancement of the calculation ceiling- Regarding.

The undersigned is directed to invite attention to this Ministry’s 0M No.7/24/2007/E-lll.A dated regarding grant of non-productivity Linked Bonus (Ad-hoc Bonus) to the Central Government employees for the accounting year 2014-2015, whereby the calculation ceiling for the purpose of payment of ad-hoc bonus was monthly emoluments of Rs.3500. The Productivity Linked Bonus (PLB) in case of Central Government employees working under certain Ministries/Departments, where such PLB was in operation in 2014-15, was also paid by the respective Ministries/Departments for the accounting year 2014-15 based on the concurrence of this Ministry with the calculation ceiling at monthly emoluments of Rs. 3500.

2. The question of enhancement of the calculation ceiling for the purpose of payment of PLB and non-PLB (ad-hoc bonus), as the case may be, to the Central Government employees has been considered and the President is pleased to decide that the calculation ceiling of monthly emoluments for the purpose of payment of PLB and ad-hoc bonus, as the case may be, shall be revised to Rs.7000 w.e.f. 01.04.2014, i.e., for the accounting year 2014-15.

3. Accordingly, the PLB or ad-hoc bonus, as the case may be, as already paid to the eligible Central Government employees for the accounting year 2014-15 in terms of the above 0M dated 16.10.2015 pertaining to ad-hoc bonus and the respective sanctions issued by the concerned Ministries/Departments in respect of PLB under the respective schemes in operation during 2014-15 based on the specific concurrence of this Ministry, shall be re-worked out based on the calculation ceiling of monthly emoluments of Rs.7000 instead of Rs.3500.

4. While re-working out payment of PLB or ad-hoc orders, as the case may be, under these orders for the accounting year 2014-15, all the other terms and conditions under which the payment was made shall remain unchanged.

5. In respect of their application to the employees working in the Indian Audit and Accounts Departments, these orders are issued in consultation with the office of the Comptroller and Auditor General of India.

6. Hindi version of this order will follow.

sd/-
(Amar Nath Singh)
Director

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GOVERNMENT REJECTED DEMAND FOR RAISING OF BONUS PAYMENT CEILING TO CENTRAL GOVERNMENT EMPLOYEES

F.No.7/4/2014-E-III(A)
Government of India
Ministry of Expenditure
(E-IIIA Branch)

North Block, New Delhi
Dated the 25th Feb, 2016

To,
Sh.Shiva Gopal Mishra
Secretary (Staff-side)
Joint Consultative Machinery(JCM)
13-C, Ferozshah Road,
New Delhi-110001.

Subject: Raising of bonus payment ceiling to Central Government employees.

Sir,
I am directed to refer to your L.No. NC-JCM-2015-S.C dated 11.1.2016 on the subject mentioned above and to say that the issue raised therein has been considered.

2. At the outset, till now there has not been a complete parity between Payment of Bonus Act, 1965 and the bonus for Central Government employees in regard to the two different ceilings, one relating to the calculation and the other relating to eligibility. While the calculation ceiling has been the same, the eligibility ceiling has been different and even the revised eligibility ceiling of Rs. 21,000 under the amended Payment of Bonus Act, 1965 is not higher than that in case of the Central Government employees where all non-gazetted employees are eligible for bonus. This being so, a complete parity for the purpose of calculation ceiling of Rs. 7000 p.m., that too, from 1.1.2014, is not justifiable.

3. Most importantly, the 7th Central Pay Commission, which has gone into the issue of bonus scheme in detail in respepct of the Central Government employees, has felt that instead of bonus, there should be introduced the Performance related Pay (PRP) for all categories of Government employees and this PRP should subsume the existing bonus scheme

The Commission has further recommended that since there would be a time log in implementing the PRP, the existing scheme should be reviewed and linked with increased profitability/productivity under the well-defined parameters. The recommendations of the Commission are separately being examined and an appropriate view would be taken as and when the Government decision on the recommendations of the 7th Central Pay Commission is known. Till such time, therefore, it may not be possible to revisit the issue of calculation ceiling in case of Central Government employees for the purpose of PLB/ad-hoc bonus.

4. This has the approval of the Finance Secretary

Yours Sincerely,
(Ashok Kumar)
Under Secretary to the Gpovt of India
Ph.23095650

Source: Confederation

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The Payment of Bonus (Amendment) Bill, 2015 notified:Increase in the Eligibility Limit under clause (13) of Section 2 and Calculation Ceiling under Section 12 of the Payment of Bonus Act, 2015

The Payment of Bonus (Amendment) Bill, 2015 was passed by the Parliament in the just concluded Winter Session of the Parliament. The Payment of Bonus (Amendment) Act, 2015 has been published in the Gazette of India, Extraordinary on 1st January, 2016 as Act No. 6 of 2016. The provisions of the Payment of Bonus (Amendment) Act, 2015 shall be deemed to have come into force on the 1st day of April, 2014.

The Payment of Bonus (Amendment) Act, 2015 envisages enhancement of eligibility limit under section 2(13) from Rs.10,000/- per month to Rs.21,000/- per month and Calculation Ceiling under section 12 from Rs. 3500 to Rs.7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher. The Payment of Bonus (Amendment) Act, 2015 also mandates previous publication of draft subordinate legislations, framed under the enabling provisions under the said Act, in the Official Gazette for inviting objections and suggestions before their final notification.

The Government has been receiving representations from trade unions for removal of all ceilings under the Payment of Bonus Act, 1965. It is also one of the demands made by them during the country-wide General Strike held in February, 2013 and September, 2015. As the last revision in these two ceilings were made in the year 2007 and was made effective from the 1st April, 2006, it was decided by the Government to make appropriate amendments to the Payment of Bonus Act, 1965.

These changes in the Payment of Bonus Act, 1965 will benefit thousands of work force.

Source: PIB News

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The Gazette of India
EXTRAORDINARY
PART II — Section 1

PUBLISHED BY AUTHORITY

No. 6] NEW DELHI, FRIDAY, JANUARY 1, 2016/PAUSHA 11, 1937 (SAKA)

Separate paging is given to this Part in order that it may be filed as a separate compilation.

MINISTRY OF LAW AND JUSTICE
(Legislative Department)

New Delhi, the 1st January, 2016/Pausha 11, 1937 (Saka)

THE PAYMENT OF BONUS (AMENDMENT) ACT, 2015
NO. 6 OF 2016

[31st December, 2015.]

An Act further to amend the Payment of Bonus Act, 1965.

BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:—

1. (1) This Act may be called the Payment of Bonus (Amendment) Act, 2015.
(2) It shall be deemed to have come into force on the 1st day of April, 2014.

2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the principal Act), in clause (13), for the words ‘‘ten thousand rupees’’, the words ‘‘twenty-one thousand rupees’’ shall be substituted.

3. In section 12 of the principal Act,—

(i) for the words ‘‘three thousand and five hundred rupees’’ at both the places where they occur, the words ‘‘seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher’’ shall respectively be substituted;

(ii) the following Explanation shall be inserted at the end, namely:—

‘Explanation.—For the purposes of this section, the expression ‘‘scheduled employment’’ shall have the same meaning as assigned to it in clause (g) of section 2 of the Minimum Wages Act, 1948.’.

4. In section 38 of the principal Act, for sub-section (1), the following sub-section shall be substituted, namely:—

‘‘(1) The Central Government may, subject to the condition of previous publication, by notification in the Official Gazette, make rules to carry out the provisions of this Act.’’.

DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.

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