The decision to award a productivity-linked bonus and a non-productivity-linked bonus for 2019-2020 was made at the Union Cabinet meeting, Information and Broadcasting Minister Prakash Javadekar told reporters.
The bonus ahead of Vijayadashami and Diwali will encourage the middle class to go out and spend and thus increase demand in the economy, he said.
The bonus will be paid out in one week.
“Payment of the bonus to unregistered employees for their performance in the previous year is generally made before the Durga Puja / Dussehra season. The Government announces the productivity linked bonus (PLB) and the ad hoc bonus for their unregistered employees to be disbursed immediately, “said a press release.
Productivity Linked Bonus (PLB) for the year 2019-2020, which has financial implications of Rs 2,791 crore, will benefit 16.97 lakh of unpublished employees in business establishments such as railways, post, defense, EPFO, ESIC, among others.
The non-PLB or ad-hoc bonus, which is awarded to central government employees not listed in the official gazette, will benefit 13.70 lakh staff. It will cost the treasury 946 million rupees.
A total of 30.67 lakh employees would benefit from the bonus announcement and the total financial implication will be Rs 3,737 crore, according to the statement.
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