Cabinet approves bonus for central govt employees, 3 mn to benefit

Union Minister Prakash Javadekar.
More than 3 million non-gazetted union government employees will get bonus amounting to Rs 3,737 crore as a step to revive demand in the economy, the cabinet decided on Wednesday.

"The Union cabinet has approved productivity linked and non-productivity linked bonus for 2019-2020. The bonus will be given in a single installment, through Direct Benefit Transfer, before Vijayadashami," said Union Minister Prakash Javadekar at a press briefing, referring to the holiday on October 25.

"More than 3 million non-gazetted employees will be benefited by the bonus announcement and total financial implication will be Rs 3,737 crores," he said after a cabinet meeting in Delhi. “This will boost demand in the market." 

"Payment of Bonus to non-gazetted employees for their performance in the preceding year is usually made before Durga Puja/Dussehra season. The Government is announcing the Productivity Linked Bonus (PLB) and ad hoc bonus for its non-gazetted employees to be disbursed immediately," said government a press release .

The Productivity Linked Bonus (PLB) for the year 2019-2020, having financial implications of Rs 2,791 crore, will benefit 16.97 lakh non-gazetted employees of commercial establishments like Railways, Posts, Defence, EPFO, ESIC, among others, according to news agency PTI.

Non-PLB or ad-hoc Bonus, which is given to non-gazetted central government employees, will benefit 13.70 lakh staff. It will cost the exchequer Rs 946 crore.

A total of 30.67 lakh employees would be benefited from the bonus announcement and the total financial implication will be Rs 3,737 crore, the release said.

Finance Minister Nirmala Sitharaman had on October 12 announced steps to stimulate consumer demand, including advance payment of a part of the wages of its employees during the festival season and more capital spending as it tries to bolster the pandemic-hit economy.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel