7th Pay Commission recommendations on Bonus and Performance related Pay
7th Pay Commission has submitted its report recently. 7th CPC’s recommendations on Bonus and PRIS are discussed here.
Bonus Schemes and Performance Related Pay
Bonus Schemes in the Central Government : Apart from DAE/DoS, there are bonus payments to Group `B’ (non-gazetted) and Group `C’ Central Government employees. The bulk of these employees are covered under the Productivity Linked Bonus (PLB) Scheme, which is implemented in Railways, Posts and Telecommunications, production units under the Ministry of Defence and other establishments
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 notes that since PRIS could not be implemented, it could not supplant the existing system of Performance Linked and Adhoc Bonus Schemes.
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
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.
Also checkout following for more topic wise details on 7th Pay Commission Report
- 7th Pay Commission Pension for Pre-2016 Pensioners – CPAO instructions
- 7th Pay Commission Pension fixation based on Notional Pay – Procedure envisaged by Finance Ministry
- Revision of 7th Pay Commission Pension on notional pay – Confederation’s Analysis
- 7th Pay Commission Pension Fixation based on notional pay fixed in 7th Pay Commission Pay Matrix – Illustrations
- Revised 7th Pay Commission Pension fixation for Pre-2016 Pensioners and Family Pensioners – Orders issued
- 7th Pay Commission related expenditure may be met by Income Disclosure II
- Payment of arrears on ad-hoc basis of pay to Defence Forces
- Who are entitled to 7th Pay Commission additional Bunching increment ?
- 7th Pay Commission Latest News – Increase in Basic Pay meagre but expected gains out of other compensation, a solace
- 7th Pay Commission – Revision in 7th CPC report expected to be made by Empowered Committee
- 7th Pay Commission News – Who are to be benefited more in terms of higher pay ?
- 7th Pay Commission report on DA, CEA, FPA, NPA, OTA and other Allowances
- 7th Pay Commission Report on Leave Encashment of Earned Leave
- 7th Pay Commission Latest News – Issues to be addressed
- Family Planning Allowance be abolished – 7th Pay Commission
- 7th Pay Commission’s Report on Leave Travel Concession (LTC)
- 7th Pay Commission’s suggestions on NPS
- 7th Pay Commission Report to be processed by Empowered Committee – Finance Ministry Order
- Heads of NDC, NDA and DSSC institutions should be upgraded to Apex Scale – 7th Pay Commission
- JPA, SPA, Off-set Machine Operator, Machine Man and Electrical Supervisor to get higher grade pay – 7th CPC Recommendations
- Store Keeper (Tech) and Asst Store Keeper to get higher grade pay – 7th CPC Recommendations
- Karnataka Pensioners associations views on 7th Pay Commission Report
- Assistant Research Officer and Senior Research Assistant of CWC to get next higher Grade Pay – 7th Pay Commission
- Comparison of Pay between Central Government Civilian and Defence Forces Officers
- Higher Grade Pay for Railway Commercial clerk, Reservation Clerk and ticket checking staff