CENTRAL GOVT ANNOUNCES ₹3,737 CRORE BONUS FOR EMPLOYEES

The government on Wednesday decided to give ₹3,737 crore bonus to 30.67 lakh central government employees to encourage spending during the festival season and add to demand in the economy.

The decision to give a productivity-linked bonus and nonproductivity-linked bonus for 2019-2020 was taken at the Union Cabinet meeting, minister of information and broadcasting Prakash Javadekar told reporters.

The bonus ahead of Vijayadashami and Diwali will encourage the middle-class to go out and spend and thus add to the demand in the economy, he said.

The bonus will be disbursed in a week’s time.

“Payment of Bonus to nongazetted 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,” a press release said.

The Productivity Linked Bonus (PLB) for the year 20192020, having financial implications of ₹2,791 crore, will benefit 16.97 lakh non-gazetted employees of commercial establishments like Railways, Posts, Defence, EPFO, ESIC, among others.

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 ₹946 crore. A total of 30.67 lakh employees would be benefited from the bonus announcement and the total financial implication will be ₹3,737 crore, the release said.