Centre announces: festival bonus for central govt employees, over 30 lakh to benefit

The total financial implication of this will be Rs 3,737 crore.

Centre on Wednesday announced festival bonus for more than 30 lakh non-gazetted central government employees.

The approval for productivity linked bonus as well as non-productivity linked bonus for 2019-20 was given during a cabinet meeting chaired by Prime Minister Narendra Modi.

The bonus will be given in a single installment, through Direct Benefit Transfer, before Vijayadashami, he added.

“The Union Cabinet approved productivity-linked bonus and non-productivity linked Bonus for 2019-2020. More than 30 lakh non-gazetted employees will be benefited by the bonus announcement and total financial implication will be Rs 3,737 crores,”
Union minister Prakash Javadekar said this afternoon.

“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 press release said.

Union government’s announcement is set to benefit more than 3 million employees including 16.97 lakh non-gazetted employees of commercial establishments like Railways, Posts, Defence, EPFO, ESIC as well as 13.70 non-gazetted central government employees who will get their non-productivity-linked bonus.

It’s a welcome development for lakhs of government employees who were skeptical about the bonus this year because of the economic consequences caused by the covid-19 pandemic.

On October 12, Centre had announced Travel (LTC) cash voucher and special festival advance schemes for central government employees to spur demand in the economy.

Usually, the bonuses are announced before Dussehra every year.Earlier, two major railway staff unions had threatened a nationwide strike demanding disbursal of the bonus before Durga Puja.

They had said that the government should not deny bonus pertaining to 2019-20 citing this year’s pandemic.

Finance Minister Nirmala Sitharaman said the employees could buy items that attract 12 per cent or more goods and services tax (GST).

These purchases will have to be made in digital mode from GST-registered outlets.

The employee would have to show the invoice of purchase for availing the discount. Apart from this, the 10 days leave encashment received by the central employees will also have to be spent. The employee will have to make all spends by March 31, 2021.

Through the festival advance scheme, a provision has been made to give every central employee an advance of Rs 10,000. This will be an interest-free advance, which can be repaid in 10 instalments. This advance will be pre-loaded on the debit card and will be a one-time advance.

Tax concessions for LTC tickets available for employees of state government and private sector too, if they choose to give such facility, these employees too can benefit. at a press briefing, referring to the holiday on October 25.

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