The payment of Bonus (Amendment) ordinance 2007 according to which section 12 of the payment of Bonus Act 1965 had been amended raising the ceiling for calculation purpose from salary of 2500/- P.M. to Rs.3500/-P.M. w.e.f. 01.04.2006. And also amended the Payment of Bonus Act, 1965 to raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3500/- per month to Rs. 10000/- per month.
Central Government employees are regularly given Productivity Linked Bonus(PLB). Each department announces its bonus days in the month of September. But, since there was an upper limit, only small amounts were given as bonuses. CG Employees Federations all over the country were demanding that the limits should be raised.