Modi govt’s big Dussehra gift, to release Rs 3,737 crore bonus for 30.67 lakh central employees | Economy News
New Delhi: The Modi government has announced big bonuses for over 30 lakh employees during the dusshera season for which it will spend Rs 3,737 crore.
The Union Cabinet chaired by the Prime Minister Narendra Modi on Wednesday gave its approval to pay Productivity Linked Bonus (PLB)for the year 2019-2020 to 16.97 lakh non-gazetted employees of commercial establishments like Railways, Posts, Defence, EPFO,ESIC,etc. The financial implication of this would be Rs 2,791 crore.
On the other hand, a Non-PLB or ad-hoc Bonus is given to Non-Gazetted Central Government employees. 13.70 lakh employees would be benefited and Rs 946 crore will be the financial implication for the same.
Payment of Bonus to non-gazetted employees for their performance in the preceding year is usually made before Durga Puja/Dussehra season. The Government is announcing the Productivity Linked Bonus (PLB) and ad hoc bonus for its non-gazetted employees to be disbursed immediately.
A total of 30.67 lakh employees would be benefited by the Bonus announcement and total financial implication will be Rs 3,737 crore.
Earlier this month, Finance Minister Nirmala Sitharman recently announced a host of schemes.
The Finance Minister said that the Centre will launch `LTC Cash Voucher Scheme` and `Special Festival Advance Scheme`. The Finance Minister also announced a special festival advance of Rs 10,000 for all gazetted and non gazetted officers. This scheme, she explained is being revived and will be one time only.
Under LTC Cash Voucher Scheme, the Government has decided to give cash payment to employees in lieu of one LTC during 2018-21, in which full payment on Leave encashment and tax-free payment of LTC fare in 3 flat-rate slabs depending on class of entitlement will be given.
The estimated cost of LTC Cash Voucher Scheme for central government employees is Rs 5,675 crore, for PSBs and PSUs it will be Rs 1,900 crore. Tax concessions for LTC tickets available for state govt. & private sector too, if they choose to give such facility, these employees too can benefit.