Govt approves bonus for more than 30 lakh employees
The Union Cabinet on Wednesday approved productivity linked and non-productivity linked bonus for the year 2019-20. Bonuses will be handed out to 30 lakh non-gazetted employees and the total financial cost of the measure will be Rs 3,737 crore, said Union minister Prakash Javadekar.
He said the bonus will be given in a single installment through Direct Benefit Transfer (DBT) before Vijayadashami.
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.
Under the LTC Cash Voucher scheme, government employees can opt to receive a cash amount to leave encashment plus three times the ticket fare, to buy items which attract a GST of 12 per cent or more. The consumers will have to spend digitally to avail the benefit.
The second scheme, announced by the finance minister on October 12, was the Special Festival Advance scheme. Under this scheme, all central government employees will have access to Rs 10,000 advance till March 31, 2021. The amount will be given to central government employees as a prepaid RuPay card.