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.
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.
Javadekar said this money in the hands of the middle class will push demand in the market. “The bonus ahead of Vijayadashami and Diwali will encourage the middle-class to go out and spend and thus add to the demand in the economy,” he said.
“Payment of bonus to non-gazetted employees for their performance in the preceding year is usually made before Durga Puja/Dussehra season. The government is announcing the Productivity Linked Bonus (PLB) and ad hoc bonus for its non-gazetted employees to be disbursed immediately,” a press release said.
Two major railway workers associations had warned of blocking rail movement if their demand for release of productivity-linked bonus was not met before the Durga Puja.
Last week, the government had announced leave travel concession (LTC) cash voucher scheme. Finance minister Nirmala Sitharaman had announced additional allocation of Rs 37,000 crore towards capital expenditure, and put money into the pockets of employees ahead of the festival season, hoping to trigger demand of Rs 1 lakh crore.
Watch Union Cabinet approves bonus for central government employees, over 30 lakh to benefit