The Cabinet is likely to approve an amendment Bill that seeks to raise the bonus limit to Rs 7,500 and wage ceiling to Rs 21,000 per month for getting the reward, among others on Wednesday.
The Cabinet will consider a bill to amend the Payment of Bonus Act, 1965, sources said.
According to the proposal, the wage ceiling for getting bonus will be increased from existing Rs 10,000 per month to Rs 21,000 per month, thus making more workers eligible for the reward. It also proposes to increase the maximum amount of bonus under the legislation to Rs 7,500 from existing Rs 3,500.
“The Cabinet is likely to consider and approve the bill to amend the Payment of Bonus Act, 1965, in its meeting tomorrow,” the source said.
Once approved by the Cabinet, the amendment bill will be tabled in Parliament for making it into a law. The winter session of Parliament is likely to start next month.