Cabinet approves bonus for central government employees, to benefit 30 lakh

New Delhi, Oct 21: Ahead of Dussehra, the Union Cabinet on Wednesday approved productivity linked and non-productivity linked bonus for the year 2019-20. The government has decided to give Rs 3,737 crore as bonus to 30.67 lakh non-gazetted employees with a view to encourage spending during the festival season.

The bonus will be given in a single instalment through Direct Benefit Transfer (DBT) before Vijayadashami.

"Union Cabinet approves 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," said Union Minister Prakash Javadekar.

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.

The beneficiaries include 17 lakh non-gazetted employees from m government's commercial establishments such as railways, post office, EPFO, ESIC and production and their share will be Rs 2,791 crore. The rest 13 lakh government employees get non-productivity link bonus of Rs 946 crore.

It may be recalled that all India Railways Federation, a union of railways staff had called for a nationwide two-hour strike on October 22, demanding immediate disbursal of the bonus.

The union said the government should not deny bonus pertaining to 2019-20 citing this year's pandemic. Every year, this bonus is given before Dussehra.