Sunday, November 29, 2020
Home Latest business news Economy news Union Cabinet approves Rs 3,737 crore bonus for Central government employees, here's...

Union Cabinet approves Rs 3,737 crore bonus for Central government employees, here’s the story

Central Government announces Rs 3,737 crore bonus for over 30 lakh government employees. Union Minister said that the total financial implication of this bonus will be Rs 3,737 crore, and it will be given in a single installment through direct benefit transfer before Vijaydashami.

As an effort to encourage spending during the festive season, the Centre on Wednesday decided to give Rs 3,737 crore as bonus to 30.67 lakh non-gazetted central government employees. The Government decided to provide both productivity and non-productivity linked bonuses for 2019-2020 after the completion of the Union Cabinet meeting. 

Information and Broadcasting minister Prakash Javadekar while addressing a press conference said employees will receive bonus in a single installment via direct transfer before Vijaydashami. “This bonus will encourage the middle-class to spend and therefore add to the demand in the economy,” added Javadekar. 

This bonus will benefit 16.97 lakh non-gazetted employees of Government establishments like posts, defence, railways, EPFO, ESIC etc., who will get productivity linked bonus–The financial implication would be Rs 2,791 crore.  Other than this, 13.70 lakh non-gazetted central government employees will get non-PLB of Rs 946 crore, the government said.

The payment to non-gazetted employees in the preceding year will usually be made before Durga Puja/Dussehra season. 

Wednesday’s decision comes just after the finance minister Nirmala Sitharaman announced measures worth 45, 675 crore with interest-free festival loans for government employees to encourage consumer spending.

Read Also: Election Commision moves Supreme Court against Madhya Pradesh campaign curbs

The government is trying to stimulate demand in the market through such announcements. India’s GDP contracted 23.9% in the June quarter, that is the worst performer among G20 economies. The Reserve Bank of India forecasts that the economy of India will contract 9.5% in the financial year 2021.

Most Popular

Home Minister Amit Shah says government ready to talk to protesting farmers

Some protesters outside Delhi are not keen to move to designated protest site Burari fearing their protest will be weakened and they will not get any footage there.

Yogi Adityanath holds mega roadshow in Hyderabad ahead of civic polls

Uttar Pradesh Chief Minister Yogi Adityanath on Saturday held a mega roadshow in Malkajgiri area of Hyderabad ahead of the Greater Hyderabad...

Kriti Sanon all set to play Sita in Prabhas-Saif Ali Khan starrer Adipurush, shoot to begin in January

Kriti Sanon has bagged a role in upcoming film Adipurush alongside Prabhas. Ever since the announcement of 3D action-drama Adipurush, fans have...

Haryana CM Manohar Lal Khattar claims Punjab CM’s aides leading farmers’ protest

Khattar's statement has come two days after a Twitter battle between the chief ministers of Punjab and Haryana. Thanking Haryana Police, Khattar said Punjab CM Amarinder Singh is fanning the farmers' protest and his office-bearers are also leading the protest.