Bonus Payment – Avoid last minute inconvenience

By- Mithun Dey

Since I joined the Railway, department Accounts or long before, it has been kept count of the delay in payment of the Productivity Linked Bonus (PLB). It’s too late to make this payment that one can’t shop contentedly. It is seen that many are waiting for the puja bonus so that they can purchase cloths and cosmetics for the India’s one of the greatest festivals. It should be given at least 20-25 days before and avoid last minute inconvenience. Sadly, with Durga Puja slated to begin in just under a week or so, still order of the PLB has yet not been placed. Bonus should pay at the earliest.

Noticeably, other than Railways, Bonus payment is being made on time which means almost a couple of months earlier, it is being made. Can Railway men get any interest for the delay of the PLB? Otherwise, one should get PLB with interest in the Railways.

The Payment of Bonus Act, 1965, awards to the staff a statutory right to a share in the profits of his employer. The Act facilitates the workers to obtain a minimum bonus equivalent to one month’s salary or wage (8.33% of annual earnings) whether the employer makes profit or not. But the Act also puts a ceiling on the Bonus and the maximum bonus payable under the Act is equivalent to 21/2 months’ salary or wage (20% of annual earnings).

More, Time limit for payment of Bonus is approved as contained by 8 (eight) months from the closing of Accounting year if there is no heated discussion. In case of any collision or dispute in respect of Bonus pending before any authority, bonus must be paid within 30 days from the date on which such award becomes enforceable or the date of settlement.

The current ceiling of Rs 3,500 must be increased to 5000 substantially in view of the booming economy and record profits posted by the Railways.

Various central ministries also follow a productivity-linked bonus and announce the number of days that would be taken into account for calculation of bonus. And the number of days of PLB should not be announced publicly at earliest as the market price almost touches the sky. Even many believe that Railway employees to 78 days bonus for the financial year 2010-2011 means getting minimum bonus equivalent to more than two month’s salary or wages. Is it so? Others don’t have idea about the ceiling limit of the PLB, one day calculation and then multiplied by number of days.

The bonus ceiling had been set at Rs 1,600 in 1965, which was raised to Rs 2,500 in 1985 and later Government set to raise the bonus ceiling was just Rs. 3500 w.e.f. 01.04.2006 for regular non-gazetted central government employees. Just Rs. 1900 was increased in between the four decades so far.

Moreover, the gazetted Railway employees’ should get bonus as they are deploying a very indispensable part of the management. As it is seen that a non-gazetted employee with grade pay Rs. 4800 or 5400 gets PLB and on the other, a gazetted with the same grade pay never gets so while the gazetted should get bonus as others. More, the bonus payment should be made through bank as well.

In the final analysis, the time has come to immediately put an end to this last minute inconvenience practice of the payment of PLB. And it is expected to get the bonus at the earliest in the next financial year 2011-2012.

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The Author can be Contacted at his email mdey76@gmail.com