Revision of Ceiling for payment of Bonus in the Bonus Act 1965

All India Railwaymen's Federation

(Estd. 1924)

 4. STATE ENTRY ROAD.

NEW DELHI-110055

INDIA

No.AIRF/387

 Dated: August 23, 2014

Shri Sadananda Gowda,

Honble Minister for Railways,

Rail Bhawan,

New Delhi

Respected Sir,

Sub: Revision of Ceiling for payment of Bonus in the Bonus Act 1965

The Payment of Bonus Act 1965 was amended in the year 2007. This Act was called as Payment of Bonus

(Amendment) Act, 2007.

In Section 12 of the Principal Act(1965), payment of minimum bonus was revised from Rs.2500 to Rs.3500 w.e.f. 1st April, 2006 through Payment of Bonus(Amendment) Ordinance 2007(8 of 2007) and subsequenfly passed by the Parliament through Bill No.89/2007. The same was incorporated in the PLB Orders issued for payment of PLB for the year 2006-07 and 2007-08(RBE No.142/2008).

The Ministry of Railways was requested several times by the All India Railwaymen’s Federation for approaching the Government of India for amendment to Section 12 of the Bonus Act 1965 to remove the ceiling of Rs.3500, mentioned in the Section 12 of the Payment of Bonus(Amendment) Act, 2007. But so far Ministry of Railways has not approached the Government of India to amend the Act to pay real wages to the Railwaymen as PLB, which is causing lot of hardship to the Railway Workers due to high escalation of prices of all commodities after the enactment of the amendment to the Bonus Act 1965 in the year 2007.

You are. therefore, requested to consider the plea made by the All India Railwaymen’s Federation and approach the Ministry of Labour, Government of India to amend Section 12 of the Bonus Act, duly removing the ceiling, mentioned in Section 12 of the Payment of Bonus(Amendment ) Act, 2007 so as to enable the Railways to pay real wages as PLB.

As Pooja Festival is approaching fast and orders for payment of Productivity Linked Bonus to Railway employees are likely to be issued shortly, you are requested to approach Hon’ble Minister for Labour to propose an amendment to Section 12 of the Payment of Bonus(Amendment) Act, 2007 to remove the ceiling so as to enable the Railwaymen to get real wages as Bonus.

Yours faithfully,

Sd/-

(Shiva Gopal Mishra)

General Secretary

Source: AIRF