The Union Cabinet on Wednesday approved the immediate disbursal of Rs 3,737 crore of bonus and non-productivity linked bonus to 30 lakh central government employees within a week, which the government said will boost demand in the festive season. The announcement brings cheer among government employees as uncertainty loomed large over bonus announcement this year, owing to Covid-19 pandemic.
Announcing the decision, Union minister Prakash Javadekar said at least 30 lakh non-gazetted employees will benefit from the announcement and the bonus will be disbursed in one instalment before Vijaya Dashami.
"More than 30 lakh non-gazetted employees will be benefited by the bonus announcement and total financial implication will be Rs 3,737 crores," Prakash Javadekar said at a press briefing. "The bonus will be given in a single instalment, through Direct Benefit Transfer, before Vijayadashami (Dussehra)," he added.
The beneficiaries include 17 lakh non-gazetted employees from 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 will get non-productivity link bonus of Rs 946 crore.
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.