Ahead of the festive season, the Union Cabinet will discuss on Wednesday a proposal of the Union labour ministry to considerably raise bonus for workers across the country.
According to the proposal, all employees earning up to Rs 21,000 a month will be eligible for bonus, against the current cut-off of Rs 10,000 a month, senior government officials said.
The amendment proposals will be made retrospectively effective from April 1 this year. The maximum amount of bonus will be proposed to be increased to Rs 7,000 per month from Rs 3,500 per month.
The move assumes importance ahead of the ongoing Bihar elections as it is set to benefit millions of workers.
Further, the central government will propose to empower itself to notify the limits for eligibility of bonus and its calculation through administrative process and not by changing the Act. However, the government may do so only "after holding consultation in the prescribed mechanism" and issuing a "notification in the official gazette."
There will be another amendment in the Section 38 of the Act to "make the provision for previous publication of the draft rules in sync with other legislations."
After being approved by the Union Cabinet, the labour ministry will introduce the changes to the Payment of Bonus Act 1965 in the winter session of the Parliament which will begin next month.
Increasing wage ceiling and maximum amount of bonus was one of the few demands put up by central trade unions before the government.
MSP of rabi crops
The Union cabinet could discuss a proposal to raise the minimum support price (MSP) of rabi crops for the 2015-16 season and also a scheme to boost fish production in the country.
Officials said, the matter could come up for discussion, though nothing has been finalized till the last moment. The Commission for Agriculture Costs and Prices (CACP) had recommended increasing the MSP of wheat, the biggest rabi grown foodgrain by Rs 75 per quintal to Rs 1,525 per quintal.
The MSP of mustard seed, which is the biggest oilseed, grown during the rabi season has been proposed at Rs 3,350 per quintal, which is Rs 250 per quintal more than 2014-15. The Commission had proposed an increase in MSP in the range of 5-8 per cent.
