Cabinet
Cabinet approves Productivity Linked Bonus and non-Productivity Linked Bonus for 2019-2020

Posted On: 21 OCT 2020 3:24PM by PIB Delhi

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has given its approval to pay Productivity Linked Bonus (PLB)for the year 2019-2020 to 16.97 lakh non-gazetted employees of commercial establishments like Railways, Posts, Defence, EPFO, ESIC, etc. will be benefitted and the financial implication would be Rs.2,791 crore.

Non-PLB or ad-hoc Bonus is given to Non-Gazetted Central Government employees. 13.70 lakh employees would be benefited and Rs.946 crore will be the financial implication for the same.

A total of 30.67 lakh employees would be benefited by the Bonus announcement and total financial implication will be Rs 3,737 crore.

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.

Also check: FAQ on LTC Cash Voucher Scheme – LTC Fare for Central Government Employees during the Block 2018-21

PIB

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At the meeting, chaired by the Prime Minister Narendra Modi, approval was given for Productivity Linked Bonus or PLB for the year 2019-2020.

After a cabinet meeting, Union Minister Prakash Javadekar said today that about 30 Lakh government workers will get a bonus for 2019-2020.
Approval was granted at the conference, chaired by Prime Minister Narendra Modi, for the year 2019-2020 Productivity Linked Bonus or PLB.

Also check; Grant of eligible Bonus to Central Autonomous body Employees – Confederation writes to FinMin

16.97 lakh non-gazetted workers of commercial institutions like Railways, Posts, Defence, EPFO, ESIC & other government sectors will benefit from this.

Non-PLB or ad-hoc bonus are granted to the Non-Gazetted Central Government Employees, which would benefit 13.70 lakh employees, the government said.

Also check: FAQ on LTC Cash Voucher Scheme – LTC Fare for Central Government Employees during the Block 2018-21

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Rajasthan State Government Employees Ad-Hoc bonus 2018-19

As per the orders employees of state government to receive an ad hoc bonus of 30 days emoluments for 2018-19.

Government servants who were in service on 31-03-2019 and remained in service on 1 April 2019, drawing pay at or below the pay level under Pay Matrix 1-12 Rules of Procedure for the Revised Payment Services Rules 2017 or Grade Pay Rs. 4800 or below the payroll in Rajasthan Civil Services Rules, 2008 (excluding State Services Officers) are entitled to an ad hoc bonus. Ad-hoc salary deduction is available.

The Ad-hoc bonus payable to eligible employees for the 2018-19 financial year is determined according to the existing emoluments as at 31 March 2019 and is limited to Rs.7000/- per month for the purposes of calculating the ad-hoc bonus.

In cases of retrospective pay allowing in pay level of the Pay Matrix 1-13 Rajasthan Civil Services (Revised Pay) Rules, 2017 or Rs. 5400/- Grade Pay of Rajasthan Civil Services (revised Pay) Rules, 2008 and above, in p, where in the Notice from the Head of Office, the ad hoc bonus eligible servant will definitely be unavailable for ad hoc bonus.

Also read: Non-Productivity Linked Bonus (Ad-hoc Bonus) granted to Central Government Employees for the year 2018-19

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No. 7/24/2007/E III (A)
Government of India
Ministry of Finance
Department of Expenditure
(E III-A Branch)

North Block, New Delhi
04th October, 2019

OFFICE MEMORANDUM

Sub: Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2018-19.

The undersigned is directed to convey the sanction of the President to the grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) equivalent to 30 days emoluments for the accounting year 2018-19 to the Central Government employees in Group ‘C’ and all non gazetted employees in Group ‘B’, who are not covered by any Productivity Linked Bonus Scheme. The calculation ceiling for payment of ad-hoc Bonus under these orders shall be monthly emoluments of Rs. 7000/-, as revised w.e.f 01/04/2014 vide OM No.7/4/2014 E.Ill(A), dated 29th August, 2016. The payment of ad-hoc Bonus under these orders will also be admissible to the eligible employees of Central Para Military Forces and Armed Forces. The orders will be deemed to be extended to the employees of Union Territory Administration which follow the Central Government pattern of emoluments and are not covered by any other bonus or ex-gratia scheme.

The benefit will be admissible subject to the following terms and conditions:

• Only those employees who were in service as on 31.3.2019 and have rendered at least six months of continuous service during the year 2018-19 will be eligible for payment under these orders. Pro-rata payment will be admissible to the eligible employees for period of continuous service during the year from six months to a full year, the eligibility period being taken in terms of number of months of service (rounded off to the nearest number of months);
• The quantum of Non-PLB (ad-hoc bonus) will be worked out on the basis of average emoluments/calculation ceiling whichever is lower. To calculate Non-PLB (Ad-hoc bonus) for one day, the average emoluments in a month will be divided by 30.4 (average number of days in a month). This will, thereafter, be multiplied by the number of days of bonus granted. To illustrate, taking the calculation ceiling of monthly emoluments of Rs. 7000 (where actual average emoluments exceed Rs. 7000), Non-PLB (Ad-hoc Bonus) for thirty days would work out to Rs. 7000×30/30.4=Rs.6907.89 (rounded off to Rs.6908/-).
• The casual labour who have worked in offices following a 6 day week for at least 240 days for each year for 3 years or more (206 days in each year for 3 years or more in the case of offices observing 5 day week), will be eligible for this Non-PLB (Ad-hoc Bonus) Payment. The amount of Non-PLB (ad-hoc bonus) payable will be (Rs. 1200×30/30.4 i.e.Rs.1184.21 (rounded off to Rs. 1184/-). In cases where the actual emoluments fall below Rs. 1200/- p.m., the amount will be calculated on actual monthly emoluments.
• All payments under these orders will be rounded off to the nearest rupee.
• Various points regarding regulation of Ad-hoc / Non- PLB Bonus are given in the Annexure.

3. The expenditure on this account will be debitable to the respective Heads to which the pay and allowances of these employees are debited.

4. The expenditure to be incurred on account of Non-PLB (Ad-hoc Bonus) is to be met from within the sanctioned budget provision of concerned Ministries/Departments for the current year.

5. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India.

(B K Manthan)
Deputy Secretary

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PLB for Defence civilians of the Army Ordnance Corps (AOC) for the Year 2018-19

No.20(02)/2019/D(JCM)
Government Of India
Ministry Of Defence
D(JCM)

New Delhi, dated the 20th Sept,2019

To,

The Chief of the Army Staff
New Delhi

Productivity Linked Bonus for the eligible Defence civilians of the Army Ordnance Corps (AOC) for the Year 2018-19.

Sir,

I am directed to refer to the Productivity Linked Bonus Scheme already circulated vide this Ministry’s letter No.F.24(6)/80/d (JCM) dated 28th September, 1983. as amended from time to time, and to convey the sanction of president to the payment of 40 days (Forty days) wages in cash as PLB for the year 2018-19 to the eligible civilian employees of the AOC.

Also check: Productivity Linked Bonus for the eligible Defence civilians of the Army Ordnance Corps (AOC) for the year 2017-2018

2. The entitlement has been worked out on the basis of the working results for the year 2018-19 in accordance with the agreed formula

3. The PLB will be paid to all eligible Gp. ‘B’ (Non-Gazetted) Gp ‘C’ and GP ‘D’ civilian employees of AOC who are covered under PLB scheme for the accounting year 2018-19. The calculation ceiling of Rs.7000/- (7000X40/30.4) and other terms and conditions of the PLB Scheme will remain unchanged.

4. Productivity Linked Bonus to the casual labourer will be paid at the assumed wages of Rs.1200/- p.m. (1200×40/30.4) for the accounting year 2018-19. However, in cases where the actual wages fall below Rs.1200/- p.m., the amount will be calculated on the actual monthly wages. The other conditions remain unchanged.

Also check: Productivity Linked Bonus for eligible Defence civilians of the Army Ordnance Corps (AOC) for the year 2016-2017

5. The expenditure on this account will be debitable to defence Service Estimates under respective Heads to which the pay and allowances of these employees are debited. The entire expenditure on the payment of PLB is to be met out of the sanctioned budget grant for the year 2019-20, without any additionality.

6. This issues with the concurrence of the Ministry of Finance (Department of Expenditure) vide their ID No.1230509/E.III(A)2019 dated 17-09-2019 and Defence (Finance/AG/PB) vide their Dy.No.110/AG/PB dated 22-08-2019

Yours faithfully

(Anil Kumar T)
Under Secretary to the Government of India
Telefax: 2301 1260

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The Terms of Reference (ToR) of the Commission mandate that it examines the existing schemes for payment of bonus and their impact on performance and productivity.

Consultation with Stakeholders was Considered Important: The system of Performance Linked Bonus (PLB) and Ad hoc Bonus have been prevalent in the Central Government for a fairly long time. Therefore, for the replacement of the existing bonus schemes with any other incentive scheme, prior consultation with the stakeholders was considered essential

The Commission feels that there is strong need to create a culture of performance in government – from establishing standards of performance, to measuring, and promoting people based on performance. To emphasize on the culture of performance, the Commission has recommended that all the non-performers in the system should be phased out after 20 years. The Commission has recommended that Performance Related Pay should be introduced in the government and that all Bonus payments should necessarily be linked with productivity.

Bonus Schemes and Performance Related Pay

The Commission feels that any Performance Related Pay (PRP) for Central Government employees should provide a credible framework to drive performance across ministries/departments. Rather than a new system design, the favoured approach should be an incremental adaptation which can operate within the existing framework of rules with minor changes that can enable smooth implementation and operationalization of PRP.

In this backdrop, the Commission recommends introduction of the Performance Related Pay for all categories of Central Government employees, based on quality RFDs, reformed APARs and broad Guidelines, as enumerated above.

The Commission also recommends that the PRP should subsume the existing Bonus schemes. The Commission notes that there could be a time lag in implementing the Performance Related Pay by different departments. Till such time, the existing Bonus Schemes should be reviewed and linked with increased profitability/productivity under well-defined financial parameters.

Bonus Calculation: To illustrate, taking the calculation ceiling of monthly emoluments of Rs. 7000 (where actual average emoluments exceed Rs. 7000), Non-PLB (Ad-hoc Bonus) for thirty days would work out to Rs. 7000×30/30.4=Rs.6907.89 (rounded off to Rs.6908/-).

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