The Government of India on Wednesday approved productivity linked and non-productivity linked bonus for the year 2019-20.
As per the government, the money will directly be credited in their bank accounts.
Over 30 lakh non-gazetted employees will benefit from the announcement. Total financial implication the decision will be ₹3,737 crore, Union Minister Prakash Javadekar said on Wednesday.
“Union cabinet has given 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 will be benefitted and the financial implication would be ₹2,791 crore,” the official statement mentioned.
The Union Cabinet’s decision on the festival bonuses comes a few days after Finance Minister Nirmala Sitharaman announced two schemes — LTC Cash Voucher Scheme and Special Festival Advance Scheme — to incentivise consumer spending and boost the country’s GDP as part of the Centre’s fresh economic revival push.
The bonus, to be given in a week’s time, will encourage the middle-class to spend and thus add to the demand in the economy, the minister said.
(With inputs from agencies)