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    Sunday, 27 December 2015

    BONUS ACT & PLB TO RAILWAYMEN - A BRIEF NOTE BY KV RAMESH DECEMBER 2015

    THE PAYMENT OF BONUS ACT, 1965 &
    PLB TO RAILWAYMEN 
    K.V.Ramesh, Sr.JGS/IRTSA

    PAYMENT OF BONUS ACT, 1965 & AMENDMENTS THEREOF
    • Minimum bonus 8.33% of the salary/wage of an employees.
    • Maximum bonus including productivity linked bonus shall not exceed 20% of the salary/wage of an employee. Previous amendment of 2007 was notified on 13 December 2007 and made effective from 1st April, 2006. 
    • Minimum bonus of 8.33% of (Rs.3500/- x 12 = Rs.42,000/-) is approximately Rs.3500/-
    • 20% of above referred Rs.42,000/- is Rs.8,400/- However, the limit is given as Rs.8,300/-
    Details of amendments to the Payment of Bonus Act, 1965:
    Sl. No
    Year of Amendment
    Eligibility Limit
    (Rs.Per Month)
    Calculation ceiling (Rs.Per Month)
    1
    1965
    Rs.1600
    Rs.750
    2
    1985
    Rs.2500
    Rs.1600
    3
    1995
    Rs.3500
    Rs.2500
    4
    2007
    Rs.10000
    Rs.3500
    5.
    Bill in LS Dec 2015
    Rs.21000
    Rs.7000

    PRODUCTIVITY LINKED BONUS FOR RAILWAY EMPLOYEE

    SALIENT FEATURES OF THE PLB SCHEME ARE AS UNDER:
    A) The output for a year is reckoned by the equated net tonne kilometres by adding together:-

    i) Total goods revenue net tonne kilometres.
    ii) Suburban passenger kilometres converted by a factor of 0.076
    iii) suburban passenger kilometres converted by a factor of 0.053

    B) The input is taken as the non-gazetted staff strength (excluding RPF/RPSF personnel), increased by the incremental increase/decrease in capital (Over average of last three years) during the year.

    C) Highest PLB amount of 78 days’wages was paid for the financial years 2010-11, 2011-12, 2012-13,2013-14 and 2014-15.

    D) The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees is 3500/- p.m. The maximum amount payable per eligible railway employee is Rs.8975 for 78 days.


    Year
    Days
    Amount
    Difference over previous year
    1
    2001-02
    59
    Rs.4849

    2
    2002-03
    59
    Rs.4849
    Nil
    3
    2003-04
    59
    Rs.4836
    Rs.-13
    4
    2004-05
    59
    Rs.4849
    Rs.13
    5
    2005-06
    65
    Rs.5342
    Rs.493
    6
    2006-07
    70
    Rs.5753
    Rs.411
    7
    2007-08
    73
    Rs.8399
    Rs.2646
    8
    2008-09
    75
    Rs.8630
    Rs.231
    9
    2009-10
    77
    Rs.8860
    Rs.230
    10
    2010-11
    78
    Rs.8975
    Rs.115
    11
    2011-12
    78
    Rs.8975
    Nil
    12
    2012-13
    78
    Rs.8975
    Nil
    13
    2013-14
    78
    Rs.8975
    Nil
    14
    2014-15
    78
    Rs.8975
    Nil
    • Amount paid as bonus never shown meaningful increase over last 15 years.
    • Only between 2006-07 and 2007-08 there was a visible increase in bonus amount
    • If bonus is linked with inflation at the rate of average 12% per year from 2001-02, it should have become Rs.24000 now, even without considering any productivity improvement.
    • Railways should not try to put any rider on this very late action.
    After enactment of the present bonus bill, wage calculation ceiling prescribed for payment of PLB to non-gazetted railway employees will be increased to 7000/- p.m. The maximum amount payable per eligible railway employee can also go upto Rs.21,000.

    But, Railway Board is having proposals to revise the bonus calculation formula which may reduce the expected benefit.

    Source:- IRTSA

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