Ministry of Defence has announced a 40-day productivity-linked bonus (PLB) for eligible civilian employees of AOC and Indian Army.
This bonus applies to the financial year 2023-24.
This decision, backed by presidential sanction, acknowledges the essential contributions of these employees to national defence.
Defence Civilian Staff: Eligibility and Coverage
The PLB covers Group B (Non-Gazetted) and Group C civilian employees of the AOC and Indian Army. They are eligible under the PLB scheme.
Casual labourers in these groups also qualify, though their bonus calculation differs slightly from that of full-time employees.
The calculation for full-time employees’ PLB uses an agreed formula that reflects the year’s working results and is based on 40 days’ worth of wages.
The calculation ceiling is Rs 7,000, resulting in a bonus amount of approximately Rs 9,211.
For casual labourers, the calculation uses an assumed monthly wage of Rs 1,200, or their actual monthly wage if it is lower.
Financial Impact and Government’s Commitment
The funds for this PLB payment will be sourced from the Defence Service Estimates. This will be under the respective budget headings for the current financial year.
This eliminates the need for additional financial allocations.
This provision is fully covered in the budget for FY 2024-25.
The announcement of the PLB comes as welcome news, especially with the festive season approaching.
It underscores the government’s commitment to its personnel and recognizes their role in maintaining essential operations and supporting India’s defence infrastructure.
The 40-day productivity-linked bonus for defence civilian staff is a significant step towards rewarding and motivating these employees.
It highlights the government’s recognition of their hard work and dedication.
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