Construction employees to come under bonus Act: Cabinet

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New Delhi, Oct 1 (UNI) The Centre today decided to bring the employees in the construction sector under the Bonus Act and raise the eligibility limit for payment of bonus from Rs 3,500 to Rs 10,000 a month and the ceiling for calculation purpose from Rs 2,500 to Rs 3,500 a month.

The decisions were taken at a meeting of the Cabinet chaired by Prime Minister Manmohan Singh, Labour Minister Oscar Fernandes and Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters.

Sources said the government would go for an ordinance immediately to give effect to the decisions.

The move reflected the UPA government's commitment towards the working class, Mr Dasmunsi said.

Construction workers were brought under the Payment of Bonus Act 1965 as the sector was witnessing a boom, he said.

It was significant that the decision had been taken on the eve of the Mahatma Gandhi's birth anniversary, the Minister said.

Mr Fernandes said amendments would be made to Section 2(13) of the Act for raising the eligibility limit to Rs 10,000 and Section 12 for hiking the ceiling to Rs 3,500.

Seven per cent of the total workforce in the country which was under the organised sector would benefit from the decision, he said.

Bonus facility would be extended to the construction sector by removing section 32(4) of the Act which had exempted it earlier.

All workers employed for at least 30 days in a year would be eligible for bonus in proportion to the number of days put in.


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