Finance Ministry announces new mode of payment of bonus

The Finance Ministry has announced a new mode of payment of bonuses to employees of Government Corporations and fully-owned government companies. However some say the move will result in a cut in bonus payment to staff of loss-making institutions.

Secretary to the Finance Ministry R. H. S. Samaratunga said in a circular issued this week, the concurrence of Treasury would need to be obtained prior to the payment of bonuses to employees in institutions which have recorded losses during the current financial year, .

Re q u e s t s for consideration of bonus payments to loss- making institutions would need to be forwarded to the Treasury with the recommendation of the Secretary to the respective ministry, the circular said.

Meanwhile the Cabinet has approved the payment of bonus to three categories of government institutions for 2017.

-Staff of institutions that have earned profits, including enterprises that have turned their entity around from lossmaking to a profit-making status but did not pay any other form of incentive based payment such as for attendance, reference etc. will be paid Rs. 15,000/each

- Profit- making institutions which which have made incentive payments will be entitled to pay Rs13, 500/- as bonus.

-While those government institutions that have recorded losses during the past year but have reduced the margin of loss compared to the previous year will be entitled to pay Rs 5,000/- as bonus.

The circular states that funds for payment of bonus will not be provided by the Treasury.

It added that this circular will not apply to government corporations and fully- owned government companies which pay salaries and other allowances under collective agreements or under any other Memoranda of Understanding.

While those government institutions that have recorded losses during the past year but have reduced the margin of loss compared to the previous year will be entitled to pay Rs 5,000/- as bonus.