Bonus Amendment Bill 2015 Not Welcomed by MSMEs

Bonus Amendment Bill 2015 Not Welcomed by MSMEs

On December 23, the Parliament had passed the Bonus Amendment Bill 2015, but the micro, small and medium enterprises of Uttar Pradesh has opposed the retrospective implementation of the bill.

The employers, especially MSMEs, would find it difficult to implement it as they had not provisioned for this expense, the MSMEs chamber, Indian Industries Association (IIA), claimed.

The small industries in Uttar Pradesh has strongly opposed the retrospective implementation of the Payment of Bonus Amendment Bill 2015.

The Bill will make more employees eligible for bonus.

The IIA President Manish Goel said that a retrospective implementation would have ‘disastrous consequences’ on MSMEs as they would be required to pay additional bonus to those who had already been paid by way of ex-gratia or performance bonus.

He said “While the government could afford to pay retrospectively by imposing taxes, the industries have no such means to collect money, especially the MSMEs, which are 26-30 million in India,”

The IIA has already written to Prime Minister Modi seeking roll back of retrospective implementation from April 1, 2014. Besides, similar letters have also been written to the President and the concerned Cabinet ministers.

Meanwhile, the association is networking with industry chambers in other states to put pressure on the Centre to roll back its decision for the retrospective clause.

The IIA maintained that the passing of amendment on the last day of the Rajya Sabha’s Winter Session also indicated that no party could consider the practical aspects and consequences of retrospective implementation for industries, especially MSMEs.