The central government on Wednesday decided to give Rs 3,737 crore as bonus to 30.67 lakh non-gazetted employees with a view to encourage spending during the festival season.
The decision to give productivity-linked bonus and non-productivity-linked bonus for 2019-2020 was taken at the meeting of the Union Cabinet, Minister of Information and Broadcasting Prakash Javadekar told reporters.
"The Union Cabinet has approved productivity-linked bonus and non-productivity linked bonus for 2019-2020. More than 30 lakh non-gazetted employees will benefit by the bonus announcement and total financial implication will be Rs 3,737 crore," he said.
The bonus, to be given in a week's time, will encourage the middle-class to spend and thus, add to the demand in the economy, the minister said. "It will be given in a single installment, through Direct Benefit Transfer, before Vijayadashami," he added.
"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," a press release said.
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.
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.
Earlier this month, the Finance Minister announced a number of measures to induce government employees to spend in the upcoming festive season, including a 'LTC Cash Voucher Scheme' and a 'Special Festival Advance Scheme'.
(With inputs from agencies)