Bonus: guidelines for PSUs


The Government today issued a notification giving the guidelines to be followed by the State public sector undertakings (PSUs) while declaring bonus to their employees.

Accordingly, the PSUs which commenced production after March 31, 1997 should restrict the bonus at the minimum level of 8.33 per cent.

The PSUs which recorded profits during 2001-02 should follow the stipulations under the Bonus Act.

However, to extend a bonus of more than 20 per cent (admissible when the net profit is more than 20 per cent), the concerned PSU should obtain the prior permission of the Government.

Under no circumstances should the PSUs which incurred losses during 2001-02 declare more than the minimum bonus. The Government guidelines also say that only employees who earn up to Rs. 3,500 as monthly salary are eligible for bonus. Apprentices are not eligible.

Bonus for workers in the coir and cashew sectors will be decided by the concerned industrial relations committees.

Instead of bonus, some PSUs are in the habit of extending benefits under certain other names to their employees.

If this is done, the amount disbursed thus will be recovered from the concerned chief executives.

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