All India Organisation of Employers' (AIOE) has requested the government to apply the amended legislation of the enhanced bonus from April 1, 2015 keeping in view both the financial and operational hardship of industry.
AIOE, an allied body of FICCI, has pleaded to the authorities to settle fraught with serious financial implications for the Indian industry, particularly the MSME sector.
Expressing concerns of the industry, Sanjay Bhatia, President, AIOE said that we have drawn the attention of Secretary, Ministry of Labour, Shankar Aggarwal on the Union Cabinet's approval to a proposal to amend the payment of Bonus Act, 1965 that will enhance the limit of coverage for payment of bonus from the existing wage limit of Rs.10,000 to Rs. 21,000 as well as the calculation limit for payment of bonus from Rs. 3500 to Rs. 7000, respectively.
Sanjay Bhatia in his recommendation to Secretary of Labour Ministry has pointed out that apart from the burden of financial implications on the MSME sector, industries will face serious functional problems as the enhanced amount of bonus has not been provided for in the balance-sheet/accounts statement of the previous year i.e. 2014-15, which ended on March 31, 2015.
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Since, the allocable surplus for payment of bonus is calculated during the preceding accounting year, out of which bonus is paid in the succeeding financial year, the payable bonus already stands allocated for the present accounting year ending March 31, 2015.
Moreover, many industries have already paid bonus to their employees, at the existing rate, before the start of the festival session. The implementation of this proposal effective April 1, 2015 will therefore cause great inconvenience to industries in reallocating the bonus amount retrospectively causing financial and operational hardships.