Government Enhances Bonus & Announces Two Years’ Bonus For Central Govt Employees
The Central Government announced on Tuesday two years’ bonus for its employees which was pending for the past two years.
Finance Minister Arun Jaitley also announced that the Bonus for 2014-15 and 2015-16 will be paid to central government employees based on revised norms. The Bonus Amendment Act will be implemented “strictly”.
Furthermore the government has doubled the employees Productivity Linked Bonus (PLB) or ad-hoc bonus to Rs. 7,000 from Rs. 3,500 with effect from April 1, 2014. In this regard the Ministry of Finance has issued Office Memorandum no.7/4/2014/E-IIIA dated 29.08.2016.
The OM states that grant of PLB or Ad-hoc Bonus to its employees for the year 2014-2015 calculation ceiling for the purpose of payment of ad-hoc bonus was monthly emoluments of Rs. 3,500.
It said that the question of enhancement of the calculation ceiling for the purpose of payment of PLB and non-PLB to the employees has been considered and the President has decided that the calculation ceiling of monthly emoluments for the purpose of payment of PLB and ad-hoc bonus, as the case may be, shall be revised to Rs.7000 with effect from April 1, 2014 for the accounting year 2014-15.
It said accordingly, the PLB or ad-hoc bonus as already paid to the eligible Central Government employees for the accounting year 2014-15 shall be re-worked out based on the calculation ceiling of monthly emoluments of Rs. 7,000 instead of Rs. 3,500.
The OM said that while re-working the new ceiling all the other terms and conditions under which the payment was made shall remain unchanged.
The revision in salary ceiling for calculation of bonus for the government employees, including railways, could entail an annual cost of R3,000 crore on the exchequer, sources said. The labour ministry would also ask all the central PSUs to replicate this as well, they said.
It said the application of the new ceiling to the employees working in the Indian Audit and Accounts Departments is being done in consultation with the office of the Comptroller and Auditor General of India.