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Bonus ceiling for organised sector raised

After launching a slew of aam admi schemes amid speculation of an early election, the Centre on Monday decided to raise the ceiling...

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After launching a slew of aam admi schemes amid speculation of an early election, the Centre on Monday decided to raise the ceiling for availing bonus from enterprises for the organised sector.

Following the demands of trade unions, the Cabinet approved the proposal to amend the Payment of Bonus Act, raising the eligibility limit for bonus from the current salary level of Rs 3,500 per month to Rs 10,000 per month. The decision will broaden the number of workers legally eligible for bonus from their employers.

The Cabinet also approved the proposal to raise the ceiling of bonus payments from current minimum of Rs 2,500 to Rs 3,500 per month, which is further likely to burden enterprises. In addition, the Government also decided to bring the workers in the construction sector (building operations) under the Payment of Bonus Act. The decision is likely to benefit around seven per cent of the workforce that is currently involved in the booming construction sector.

The Central trade unions participating in the Indian Labour Conference, a tripartite body of workers, employers and the Government, in its meeting in April this year had demanded raising the ceiling on eligibility for bonus payments from existing Rs 3,500 per month to Rs 10,000. However, employer organisations had suggested raising the limit to Rs 7,500 per month.

In this context, the matter was then left to the Union Minister for Labour and Employment (independent charge) Oscar Fernandes for final decision.

Other decisions by cabinet

• Gorkha Hill Council gets nod

The Centre has decided to create an autonomous self-governing Gorkha Hill Council in Darjeeling, fulfilling a long-standing demand of the people there. A proposal to create the council was cleared at the Cabinet meeting chaired by Prime Minister Manmohan Singh. A Bill to amend the Constitution for creating the new council will be introduced in the winter session of Parliament, Information and Broadcasting Minister P R Dasmunsi said after the meeting. Articles 244 and 332 of the Sixth Schedule of the Constitution will be amended to form the council.

• Road plan expansion to cover Northeast

The Cabinet Committee on Economic Affairs (CCEA) gave approval for major expansion of the Special Accelerated Road Development Programme (SARDP) for the North-East. The expanded Phase A of SARDP will now cover an additional 994 kms of roads at the cost of Rs 4673 crore. As part of the plan, the Indian side of the famous Stilwell road that goes from Ledo in Assam through Myanmar into China will be constructed besides four laning of 330 kms of NH 44 in Tripura. The expanded SARDP Phase A will now cover road corridors extending across some 2,304 kms. The original Phase A covered 1,310 kms at a cost of Rs 4,618 crore.

• India, Philippines to relax visa rules

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India and Philippines will sign a pact to abolish the need for visas by diplomatic and official passport holders. With the Union Cabinet clearing a proposal on Monday, the agreement will be signed during the visit of Philippines President Gloria Macapagal Arroyo that begins on October 5. The agreement envisages visa-free travel for diplomatic and official passport holders of both countries while entering or transiting through each other’s territory, Information and Broadcasting Minister P R Dasmunsi said after the Cabinet meeting. Citizens holding these passports will be permitted to stay in the other country for a maximum of 30 days without a visa. But both countries would reserve the right to refuse entry to a person or terminate his stay in its territory.

• GSI to get new ship

The Centre gave its go-ahead to the Geological Survey of India (GSI) to buy a new ship for research purposes to replace of its ageing ship, Samundra Manthan. The Cabinet approved the proposal to acquire a new ship at an estimated cost of Rs 448 crores which will help the GSI in carrying out sea-bed surveys and exploration of non-living resources in sea.

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