Cabinet announces bonus for central govt employees: All you need to know
This comes days after finance minister Nirmala Sitharaman had announced a Leave Treavel Concession (LTC) cash voucher scheme. The government announced the scheme, and the bonus today, to increase demand which will lead to spending thereby benefitting the economy.Updated: Oct 21, 2020, 16:34 IST
The Union Cabinet on Wednesday approved bonus for central government employees, just ahead of Dussehra. This was announced by Union minister Prakash Javadekar, who held a press conference to give details about the decisions taken in the Cabinet meeting.
Here is everything you need to know about the Cabinet’s latest decision:
The Union Cabinet has decided to give productivity linked and non-productivity linked bonus for the year 2019-2020, Javadekar said. The move will benefit 30 lakh non-gazetted employees.
The minister also announced that total financial implication will be Rs 3,737 crore.
The financial implication
Javadekar announced that productivity-linked bonus will be given to employees working at commercial establishments, like railways, post office and defence production. There are 17 lakh non-gazetted working in these establishments. The cost of giving bonus to these employees will be around Rs 2,791 crore, said Javadekar.
The other 13 lakh non-gazetted government employees will be given non-productivity linked bonus. This will worth Rs 946 crore, said the Union minister.
How will the bonus amount be disbursed?
Javadekar announced that the bonus will be disbursed immediately, in one installment, before Vijaya Dashami. The disbursal will be carried out through direct benefit transfer (DBT), he further said.
This comes days after finance minister Nirmala Sitharaman had announced a Leave Treavel Concession (LTC) cash voucher scheme. The government announced the scheme, and the bonus today, to increase demand which will lead to spending thereby benefitting the economy.
The All India Railways Federation had given a call for a two-hour strike on October 22 if bonus is not declared by Wednesday.
Every year, this bonus is given before Dussehra. But this year, the government has not yet announced bonus owing to the pandemic condition.