Productivity linked Bonus all Railway Employees: Amendment to payment of Bonus Act, 1965

Government has recently passed the bill for revision of Bonus calculation from Rs. 3500/- to Rs.7000/- and the eligibility ceiling to Rs. 21,000 with effect from 01.04.2014 – As Railway Employees are entitled to Productivity linked Bonus all Railway Unions are pressing the Govt for grant of arrears of bonus for the financial year 2014-15

Revision of wage calculation limit from Rs. 3500/- p.m. to Rs. 7000/- p.m. with effect from 01/04/2014 – Amendment to payment of Bonus Act, 1965

National Federation of Indian Railwaymen writes to Minister of Railways on amendment of Bonus Act 1965.

NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055
Affiliated to :
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)

No. 1/10/Part IV

Dated: 07/03/2016

Shri Suresh Prabhu,
Hon’ble Minister for Railways, Rail Mantralaya,
New Delhi

Respected Sir,
Sub: Amendment to payment of Bonus Act, 1965-Revision of wage calculation limit from Rs. 3500/- p.m. to Rs. 7000/- p.m. with effect from 01/04/2014- payment of P.L. Bonus to Railway employees at revised rate of Rs. 7000/- p.m.-reg.
Ref: Railway Board’s reply vide No. E(P&A)II-2014/PLB-8 dated 16/02/2016 to GS/NFIR.

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While thanking the Railway Ministry for its prompt reply to NFIR under reference No. E(P&A)II-2014/PLB-8 dated 16/02/2016, the Federation re-iterates the following facts for taking appropriate steps by the Government.

(i) The chronological developments since decades need to be taken into account for processing the case for payment of PL Bonus to the Railway employees at the revised wage calculation ceiling limit i.e. Rs. 7000/- p.m. w.e.f. 01/04/2014.

(ii) When the Bonus Act was amended, raising the wage calculation ceiling from Rs. 750 to 1600, the Railway employees were paid PL Bonus at the revised wage calculation ceiling limit. Subsequently, when the Bonus Act was amended, revising the wage calculation limit from Rs. 1600/- to Rs. 2500/-, the said rate was adopted by the Railway Ministry and PL Bonus paid to the Railway employees at the revised rates.

(iii) When the wage calculation ceiling was again revised to Rs. 3500/- w.e.f. 1st April 2006, the Federation took up the issue and explained the merits of the case for adopting the rate of Rs. 3500/- w.e.f. 01/04/2006 for ensuring payment of PL Bonus. The Railway Ministry had processed the case and obtained Union Cabinet’s approval and issued orders vide letter No. E(P&A)II-2008/PLB-10 dated 03/10/2008, duly revising the wage calculation ceiling to Rs. 3500/- with retrospective effect i.e, from 01/04/2006, consequently, PLB arrears for the year 2006-07 were paid to the Railway employees in October 2008.

From the above facts, it could be seen that the payment of P.L. Bonus has been ensured commensurating with the revision of wage calculation ceiling limit made through amendments to Bonus Act, 1965 without any deviation. Similarly when the wage calculation ceiling limit has been raised to Rs. 7000/- p.m., the Railway Employees are entitled for payment of P.L. Bonus at revised rates for the year 2014-15.

NFIR, therefore, requests the Hon’ble Railway Minister to kindly arrange to process the case on top priority for obtaining the approval of the Union Cabinet for making payment of PL Bonus arrears pertaining to the year 2014-15 to the Railway employees at the earliest.

Yours sincerely,
(Dr. M. Raghavaiah)
General Secretary

Click to view NFIR letter No.1/10/Part IV dated 07.03.2016