There was uncertainty in the wake of Covid-19 and the subsequent economic slowdown that whether the government will offer bonus.
Union minister Prakash Javadekar said today that around 30.67 lakh Central government employees will receive a bonus for 2019-2020, in another bid by the government to boost spending and putting end to the uncertainty over the issue as the festive season started across the country. The minister, after a meeting chaired by Prime Minister Narendra Modi, said the total cost to the exchequer will be ₹ 3,737 crores.
“The Union Cabinet approves productivity-linked bonus and non-productivity linked Bonus for 2019-2020. More than 30 lakh non-gazetted employees will be benefited by the bonus announcement and total financial implication will be ₹ 3,737 crores,” Prakash Javadekar said on Wednesday.
Mr Javadekar also informed that the money will be given in a single instalment before Vijaya Dashami, expressing hope that it would encourage spending and boost the economy.
There was uncertainty in the wake of Covid-19 and the subsequent economic slowdown that whether the government will offer bonus. The Dearness Allowances or DA was earlier suspended for Central government employees.
The central government today said the cabinet approved the Productivity-Linked Bonus or PLB for 2019-2020, that would benefit 16.97 lakh non-gazetted employees of commercial establishments like railways, posts, defence, EPFO and the ESIC, NDTV reported.
The government also said that Non-PLB or ad-hoc bonus is given to non-gazetted Central government employees, from which 13.70 lakh employees will benefit.
Non-gazetted employees usually get a bonus, meant for performance in the preceding year, before the Durga Puja or Dussehra festivals.