Employers’ association AIOE has asked the government to defer the implementation of amen-dments in the Payment of Bonus Act to next fiscal so as to reduce financial burden on the industry, particular
Employers’ association AIOE has asked the government to defer the implementation of amen-dments in the Payment of Bonus Act to next fiscal so as to reduce financial burden on the industry, particularly small and medium businesses.
Keeping in view both the financial and operational hardships facing the industry, All India Organi-sation of Employers’ (AIOE), an allied body of business chamber Ficci, has requested the government to apply the amended legislation prospectively — from financial year 2016-17.
AIOE said in a statement that the applicability of enhanced bonus from April 1, 2015 is fraught with serious financial implications for the Indian industry.
Sanjay Bhatia, the president of AIOE, has written to labour secretary Shankar Aggarwal for deferring the implementation. The amendment Bill seeks to enhance the limit of coverage for payment of bonus from the existing wage limit of Rs10,000 to Rs 21,000 per month as well as the calculation limit for payment of bonus from Rs 3,500 to Rs 7,000 per month.
In the letter, he said apart from the burden of financial implications on the MSME sector, industries will face functional problems as the enhanced amount of bonus has not been provided for in the accounts the previous year i.e. 2014-15.
