defence employee bonus: Productivity-linked bonus announced for employees of Indian Army: Eligibility, bonus calculation and more

defence employee bonus: Productivity-linked bonus announced for employees of Indian Army: Eligibility, bonus calculation and more

A productivity-linked bonus has been sanctioned for the eligible civilian employees of the Army Ordnance Corps for 2022-23. In an order dated November 8, 2023, the Ministry of Defence mentioned eligibility, calculation of bonus, and other rules for the productivity-linked bonus. Read here to find out.

Who will be eligible for a productivity-linked bonus in the Indian Army?

The bonus will be paid to all eligible group B (non-gazetted) and group C civilian employees of the Indian Army who are covered under the productivity linked bonus scheme (PLB) scheme for the accounting year 2022-23. How much productivity-linked bonus will civilian employees of the Indian Army get?
“The calculation ceiling of Rs 7,000/- (7000×40/30.4) and other terms and conditions of the PLB Scheme will remain unchanged,” said the order. To calculate the productivity-linked bonus for one day, the average emoluments for the year will be divided by 30.4, representing the average number of days in a month. This figure will then be multiplied by the number of days for which the bonus is granted. “The entitlement has been worked out on the basis of the working results for the year 2022-2023 in accordance with the agreed formula,” it added.

“Productivity Linked Bonus to the casual labourer will be paid at the assumed wages of Rs.1200/-p.m. (1200×40/30.4) for the Accounting Year 2022-2023,” said the order.

“The expenditure on this account will be debitable to Defence Service Estimates under respective Heads to which the pay and allowances of these employees are debited. The entire expenditure on the payment of PLB is to be met out of the sanctioned budget grant for the year 2023-2024, without any additionality,” it further mentioned. Non-productivity linked bonus announced earlier
Last month, the central government granted a non-productivity linked bonus equivalent to 30 days’ emoluments for the financial year 2022-23 to all central government employees in Group C, as well as all non-gazetted employees in Group B who are not covered by any productivity-linked bonus. The calculation ceiling for the payment of this ad-hoc bonus would be monthly emoluments of Rs 7,000, according to an official memorandum from the Department of Expenditure under the Finance Ministry. The bonus will also apply to eligible employees of the Central Para Military and Armed Forces.

46% DA from July 1, 2023
Dearness Allowance (DA) payable to Armed Forces officers and personnel Below Officer Rank, including non-combatants (Enrolled), has been increased from 42% to 46% with effect from July 1, 2023. The Dearness Allowance is a distinct element of remuneration and will not be treated as pay within the ambit of Pay rules of Defence Force Personnel, as per the Ministry of Defence.

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Author: Shirley