State PSUs in Kerala to give minimum 8.33% Onam bonus

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Trivandrum: The employees of State owned Public Sector Undertakings (PSUs) in Kerala will receive a minimum bonus of 8.33 per cent of their annual earnings before Onam this time.

The Ministry of Labour & Rehabilitation has issued its order on bonus on August 23, 2014. As per the guidelines, any PSU declaring more than 8.33 per cent bonus should have finalised its annual audited accounts for 2013-14. It should have reported profit for the year to give more than the minimum bonus to the employees, as stipulated by the Payment of Bonus Act.

If the allocable surplus is over 20 per cent, payment of any amount above 20 per cent should be made only with the prior permission of the government, the order said. Only employees drawing a monthly salary of up to Rs.10,000 are eligible for the bonus. Those drawing higher salaries will be eligible only for a special festival allowance for Onam.

Loss making State owned Enterprises will also give the minimum bonus of 8.33 per cent to its employees provided the PSU made operating profit is the last financial year.

Public Sector Undertakings in Kerala are of two types, public sector units in which majority shares are owned by Union (Central) Government and public sector units in which majority shares are owned by State Government.

There are over 120 PSUs in Kerala spread over 14 different sectors of the State’s economy. These sectors are as varied as engineering, electronics to wood products and welfare agencies. Most of State Public Sector Undertaking units are under Department of Industries. Most of the PSUs in Kerala are loss making units.

Kerala Biz News

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