Mumabi: The union cabinet has approved changed to the Bonus Act, making workers drawing a monthly salary of up to Rs10,000 eligible for annual bonus against the current limit of Rs3,500.

The cabinet has approved the amendment to section 12 "to raise the eligibility limit for payment of bonus from the salary or wage of Rs3,500 to Rs10,000 per month," labour minister Oscar Fernandes said.

The announcement of the bonanza, which comes ahead of the festival season, is expected to help millions of industrial workers.

The decision would benefit seven per cent of the total organized sector workforce in the country, the minister said.

The payout proposal is broadly in line with recommendations of the 41st session of the Indian Labour Conference (ILC) held in April this year, sources said.

The government is likely to bring an ordinance for the purpose since the next session of parliament would be called in November.

also see : General reports on Economy