Cabinet approves bonus for over 30 lakh employees

The payments linked to productivity-linked bonus and ad hoc bonus for its non-gazetted employees will be disbursed immediately.

The Union Cabinet meet chaired by Prime Minister Narendra Modi has given its approval to pay bonus to around 30.67 lakh Central government employees will receive a bonus for 2019-2020

The decision brings to an end uncertainty over the issue as the country enters festive season

The total cost to the exchequer will be Rs 3,737 crore.

Briefing the media after the cabinet decision, Union minister Prakash Javadekar said, "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 Rs 3,737 crore."

The Productivity-Linked Bonus or PLB for 2019-2020 would benefit 16.97 lakh non-gazetted employees of commercial establishments like railways, posts, defence, EPFO and the ESIC. The financial implication of the scheme would be Rs 2,791 crore.

Non-PLB or ad-hoc bonus will given to non-gazetted Central government employees, from which 13.7 lakh employees will benefit, the government said. 

The payments linked to productivity-linked bonus and ad hoc bonus for its non-gazetted employees will be disbursed immediately.

Bonus to non-gazetted employees -- meant for performance in the preceding year -- is usually made before the Durga Puja or Dussehra festivals.