A complete reference blog for Indian Government Employees

Showing posts with label 7th CPC Bonus. Show all posts
Showing posts with label 7th CPC Bonus. Show all posts

Friday, 28 September 2018

7th Pay Commission Incentive Bonus to Railway Employees


7th Pay Commission Incentive Bonus to Railway Employees

NFIR

No. I/1 1/Part I
Dated: 26/09/2018
The General Secretaries of Affiliated Unions of NFIR Dear Brother,

Sub: Need for revision of hourly rate of Incentive Bonus and Bonus Factor of Workshops/Production Units following implementation of 7th CPC - 3rd meeting of the Committee held on 26/09/2018.

The demand of NFIR vide PNM Item No. 12/2017 was discussed in the Board PNM meeting held on 13th /14th November, 2017. The NFIR' s Agenda provides detailed background of Incentive Bonus rates from time to time and the need for upward revision of the rates in the wake of implementation of 7th CPC Pay Matrices for Workshops and PU employees on Indian Railways.

3rd Meeting of Committee for recommendation of hourly rates of incentive bonus and bonus factors of Workshops/PUs has been held this day 26th September, 2018 at Rail Bhavan, New Delhi. GS/NFIR assisted by Shri Gobinath SSE/ICF, Perambur have participated in the meeting. During discussion, NFIR has reiterated its point of view demanding revision of rates in accordance with the formula adopted in 1999 and confirmed by the Railway Board to the Ministry of Finance on 19th July, 2005. NFIR also expressed its strong resentment over abnormal delay in finalizing revision of rates and equally upward revision of Incentive Allowance to SSEs to 30% of Pay as the SSEs are presently paid the amount very less in comparison with other lower pay level staff.

After lengthy discussion, the Official Side of Railway Board responded that a draft proposal will be provided to the Staff Side soon i.e. in a fortnight and thereafter another round of discussion may be held to finalize the rates duly taking into account the points brought out by NFIR.

The above is for information of affiliated Unions. A copy of the minutes of second meeting of the Committee held on 04th July, 2018 is also enclosed.

Yours fraternally
(Dr. M. Raghavaiah)
General Secretary

nfir-7thCPC-Bonus
Source: NFIR
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Wednesday, 26 September 2018

7th CPC Bonus Recommendations Report

7th CPC Bonus Recommendations Report
The Terms of Reference (ToR) of the Commission mandate that it examines the existing schemes for payment of bonus and their impact on performance and productivity.

Consultation with Stakeholders was Considered Important: The system of Performance Linked Bonus (PLB) and Ad hoc Bonus have been prevalent in the Central Government for a fairly long time. Therefore, for the replacement of the existing bonus schemes with any other incentive scheme, prior consultation with the stakeholders was considered essential

The Commission feels that there is strong need to create a culture of performance in government - from establishing standards of performance, to measuring, and promoting people based on performance. To emphasize on the culture of performance, the Commission has recommended that all the non-performers in the system should be phased out after 20 years. The Commission has recommended that Performance Related Pay should be introduced in the government and that all Bonus payments should necessarily be linked with productivity.

Bonus Schemes and Performance Related Pay

The Commission feels that any Performance Related Pay (PRP) for Central Government employees should provide a credible framework to drive performance across ministries/departments. Rather than a new system design, the favoured approach should be an incremental adaptation which can operate within the existing framework of rules with minor changes that can enable smooth implementation and operationalization of PRP.

In this backdrop, the Commission recommends introduction of the Performance Related Pay for all categories of Central Government employees, based on quality RFDs, reformed APARs and broad Guidelines, as enumerated above.

The Commission also recommends that the PRP should subsume the existing Bonus schemes. The Commission notes that there could be a time lag in implementing the Performance Related Pay by different departments. Till such time, the existing Bonus Schemes should be reviewed and linked with increased profitability/productivity under well-defined financial parameters.

Bonus Calculation: To illustrate, taking the calculation ceiling of monthly emoluments of Rs. 7000 (where actual average emoluments exceed Rs. 7000), Non-PLB (Ad-hoc Bonus) for thirty days would work out to Rs. 7000×30/30.4=Rs.6907.89 (rounded off to Rs.6908/-).

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Thursday, 26 July 2018

Bonus for 2017-18 to be paid in the current year 2018

Bonus for 2017-18 to be paid in the current year 2018
Bonus for 2017-18 to be paid in the current year 2018

Productivity Linked Bonus for the financial year 2017-18 to be paid in the current year 2018

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
No.E(P&A)II-2018/PLB-3
New Delhi, dated: 25.07.2018
The General Secretary,
AIRF,
4, State Entry Road,
New Delhi-110055

The General Secretary,
NFIR,
3, Chelmsford Road,
New Delhi-110055

Subject: Productivity Linked Bonus for the financial Year 2017-18 to be paid in the current year 2018.

On the above mentioned subject, a meeting of the Federations (AIRF & NFIR) with Addl. Member (Staff) and EDPC-I has been fixed for 07.08.2018 at 03.00 P.M. in the Chamber of Addl. Member (Staff), Room No.401, Rail Bhawan, New Delhi.

President and General Secretary of the Federations may kindly make it convenient to attend the meeting.
Yours faithfully,
sd/-
(D.Malik)
Director, Estt/IR
Source: NFIR

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Tuesday, 30 August 2016

Enhancement of Bonus Ceiling for CG Employees – Finmin issued Orders on 29.8.2016


Grant of Productivity Linked Bonus (PLB) and non-productivity Linked Bonus (Ad-hoc bonus) in case of Central Government employees for the accounting year 2014-15 – enhancement of the calculation ceiling- Regarding.

No.7/4/2014-E-IIIA
Government of India
Ministry of Finance
(Department of Expenditure)
North Block, New Delhi
Dated the 29th August, 2016
Office Memorandum

Subject: Grant of Productivity Linked Bonus (PLB) and non-productivity Linked Bonus (Ad-hoc bonus) in case of Central Government employees for the accounting year 2014-15 – enhancement of the calculation ceiling- Regarding.

The undersigned is directed to invite attention to this Ministry’s 0M No.7/24/2007/E-lll.A dated regarding grant of non-productivity Linked Bonus (Ad-hoc Bonus) to the Central Government employees for the accounting year 2014-2015, whereby the calculation ceiling for the purpose of payment of ad-hoc bonus was monthly emoluments of Rs.3500. The Productivity Linked Bonus (PLB) in case of Central Government employees working under certain Ministries/Departments, where such PLB was in operation in 2014-15, was also paid by the respective Ministries/Departments for the accounting year 2014-15 based on the concurrence of this Ministry with the calculation ceiling at monthly emoluments of Rs. 3500.

2. The question of enhancement of the calculation ceiling for the purpose of payment of PLB and non-PLB (ad-hoc bonus), as the case may be, to the Central Government employees has been considered and the President is pleased to decide that the calculation ceiling of monthly emoluments for the purpose of payment of PLB and ad-hoc bonus, as the case may be, shall be revised to Rs.7000 w.e.f. 01.04.2014, i.e., for the accounting year 2014-15.

3. Accordingly, the PLB or ad-hoc bonus, as the case may be, as already paid to the eligible Central Government employees for the accounting year 2014-15 in terms of the above 0M dated 16.10.2015 pertaining to ad-hoc bonus and the respective sanctions issued by the concerned Ministries/Departments in respect of PLB under the respective schemes in operation during 2014-15 based on the specific concurrence of this Ministry, shall be re-worked out based on the calculation ceiling of monthly emoluments of Rs.7000 instead of Rs.3500.

4. While re-working out payment of PLB or ad-hoc orders, as the case  may be, under these orders for the accounting year 2014-15, all the other terms and conditions under which the payment was made shall remain unchanged.

5.  In respect of their application to the employees working in the Indian  Audit and Accounts Departments, these orders are issued in consultation with the office of the Comptroller and Auditor General of India.

6. Hindi version of this order will follow.
sd/-
(Amar Nath Singh)
Director
Click to view the order

Authority: http://finmin.nic.in/
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Tuesday, 23 August 2016

Need for revision of hourly rates of incentive bonus and incentive allowance in favour of Railway Staff: NFIR


Need for revision of hourly rates of incentive bonus and incentive allowance in favour of staff of Workshops/Production Units under CRJ Pattern/GIS: NFIR Reference to Railway Board
NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055
No.I/11/Part I
Dated: 16-08-2016
The secretary (E),
Railway Board,
New Delhi.
Dear Sir,
Sub: Need for revision of hourly rates of incentive bonus and incentive allowance in favour of staff of Workshops/Production Units under CRJ Pattern/GIS- reg.
Pursuant to the decisions of the Government on the recommendations of the VII CPC, the Railway Board vide letter No.PC-VII/2016/RSRP/2 dated 02/08/2016 (RBE No.93/2016) has circulated “Schedules for revised scales of Pay” in respect of Railway employees to be given effect from 01-01-2006.
II. In this connection, NFIR desires to state that after implementation of 6th CPC grade pay/pay band, the Railway Board had in consultation with the Federations issued instructions vide letter No.2008/M(W)/814/38 dated 29-10-2009 (RBE No.194/2009) revising hourly rates of incentive bonus under CRJ Pattern/GIS for staff in Workshops and production Units and also PCO allowance. Upward revision of rates was also granted vide RBE No.142/99 dated 21-06-1999 (i.e. after implementation of V CPC Pay Scales). A chart showing the revision of hourly rates granted by the Railway Board is placed below:
S. No
DESIGNATION
V CPC PAY SCALES & INCENTIVE HOURLY RATES AS PER RBE NO.142/99 Dt: 21-06-1999
VI CPC PAY BAND/GRADE PAY INCENTIVE HOURLY RATES AS PER RBE No.194/09 Dt: 29-10-2009
Pay ScaleHourly Rates under CRJ Pattern
(Rs.)
Incentive Bonus Under GIS Pattern
(Rs.)
Pay ScaleHourly Rates under CRJ Pattern
(Rs.)
Incentive Bonus under GIS Pattern at 100% earnings
(Rs.)
1
2
3
4
5
6
7
8
1Junior Engineer Grade I5500-900026.4571509300 – 34800
+ GP 4200
49.6513440
2Junior Engineer Grade II5000-800024.006500
3Senior Technician5000-800024.00
4Supervisor4500-700021.6558505200-20200

+ GP 2800
43.3011700
5Technician Grade I4500-700021.65
6Technician Grade II4000-600019.2552005200-20200
+ GP 2400
38.5010400
7Technician Grade III3650-459017.5539655200-20200
+ GP 1900
32.207930
8Technician Grade III3050-357514.65
9Semi Skilled2750-440013.2035755200-20200
+ 1800
25.456760
10Unskilled2550-320012.5033154440-7440
+ GP 1300
24.506630
Note:
  • Incentive Bonus earnings under GIS Pattern on the basis of V CPC structure was arrived at by multiplying minimum pay of pay scale X 1.3 times (in the year 1999).
  • Incentive Bonus earning under GIS pattern on the basis of VI CPC was arrived at by just doubling the values & fixing it a 100% earning level (in the year 2009).
  • In case of Hourly rates earning under CRJ pattern, the Hourly rate values of V CPC were just doubled and fixed as hourly rate earnings after implementation of VI CPC.

III. NFIR now wants the Railway Board to appreciate that similar upward revision of hourly rates of incentive bonus is needed to be granted as the revised pay matrices of VII CPC have been given effect from January 1, 2016. The SSEs of Indian Railways Workshops and Production Units are presently paid incentive allowance on VI CPC pay. This also needs to be revised upwardly duly taking into consideration the revised Pay Matrix allotted to them.
NFIR, therefore, requests the Railway Board to take action for revision the rates early as was done during the year 1999 and 2009. It is also relevant to take note of the fact that there is already heavy shortage of staff in all Railway Workshops and Production Units with increased activity resulting additional workload burden on the existing staff. This aspect be given due weightage for the purpose of hiking the hourly rates of incentive bonus, PCO allowance and incentive allowance to the staff as well SSEs.

Yours faithfully,
(Dr.M.Raghavaiah)
General Secretary.
Source: NFIR
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Tuesday, 1 March 2016

GOVERNMENT REJECTED DEMAND FOR RAISING OF BONUS PAYMENT CEILING TO CENTRAL GOVERNMENT EMPLOYEES

GOVERNMENT REJECTED DEMAND FOR RAISING OF BONUS PAYMENT CEILING TO CENTRAL GOVERNMENT EMPLOYEES

F.No.7/4/2014-E-III(A)
Government of India
Ministry of Expenditure
(E-IIIA Branch)
North Block, New Delhi
Dated the 25th Feb, 2016
To,
Sh.Shiva Gopal Mishra
Secretary (Staff-side)
Joint Consultative Machinery(JCM)
13-C, Ferozshah Road,

New Delhi-110001.

Subject: Raising of bonus payment ceiling to Central Government employees.

Sir,
I am directed to refer to your L.No. NC-JCM-2015-S.C dated 11.1.2016 on the subject mentioned above and to say that the issue raised therein has been considered.

2. At the outset, till now there has not been a complete parity between Payment of Bonus Act, 1965 and the bonus for Central Government employees in regard to the two different ceilings, one relating to the calculation and the other relating to eligibility. While the calculation ceiling has been the same, the eligibility ceiling has been different and even the revised eligibility ceiling of Rs. 21,000 under the amended Payment of Bonus Act, 1965 is not higher than that in case of the Central Government employees where all non-gazetted employees are eligible for bonus. This being so, a complete parity for the purpose of calculation ceiling of Rs. 7000 p.m., that too, from 1.1.2014, is not justifiable.

3. Most importantly, the 7th Central Pay Commission, which has gone into the issue of bonus scheme in detail in respect of the Central Government employees, has felt that instead of bonus, there should be introduced the Performance related Pay (PRP) for all categories of Government employees and this PRP should subsume the existing bonus scheme.

The Commission has further recommended that since there would be a time log in implementing the PRP, the existing scheme should be reviewed and linked with increased profitability/productivity under the well-defined parameters. The recommendations of the Commission are separately being examined and an appropriate view would be taken as and when the Government decision on the recommendations of the 7th Central Pay Commission is known. Till such time, therefore, it may not be possible to revisit the issue of calculation ceiling in case of Central Government employees for the purpose of PLB/ad-hoc bonus.

4. This has the approval of the Finance Secretary
Yours Sincerely,
(Ashok Kumar)
Under Secretary to the Gpovt of India
Ph.23095650
BONUS PAYMENT CEILING TO CENTRAL GOVERNMENT EMPLOYEES

Source: Confederation
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Friday, 15 January 2016

Raising of Bonus Payment Ceiling to the Central Government Employees

Raising of Bonus Payment Ceiling to the Central Government Employees
Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
For Central Government Employees
13-C, Ferozshah Road New Delhi – 110001
E Mail : nc.jcm.np@gmail.com
Shiva Gopal Mishra
Secretary
No. NC-JCM-2015/S.C
January 11,2015
The Secretary
Government of India
Department of Expenditure

North Block, New Delhi- 110 001
Subject: – Raising of Bonus Payment Ceiling to the Central Government Employees.
Reference: – The payment of Bonus (Amendment) Bill 2015.
Sir,
The Payment of Bonus (Amendment) Bill 2015 was passed by both the houses of the Parliament. The amendment provides that the existing Ceiling limit of Bonus for 30 days Rs. 3,500/- is enhanced to Rs. 7,000/- for 30 days. This amendment will take effect from 01.04.2014 (A copy of the Bill passed in the Parliament is enclosed for your kind ready reference).
You are aware that any change in Bonus Act would be an indicator while deciding the Payment of Bonus to the Central Government Employees. Accordingly, every time when Bonus Act is amended raising the payment ceiling limit, it is extended to Central Government Employees also. This issue was also raised by the Staff Side in the Standing Committee Meeting of National Council (JCM) held on 09th October, 2015.
It is therefore requested that steps may be taken for issuing Government Orders for enhancing the Bonus Payment Ceiling limit of Central Government Employees both PLB and Adhoc Bonus to Rs. 7,000/- w.e.f 01.04.2014 and arrears of PLB and Adhoc Bonus for the year 2014-2015 may be paid to the employees.
An earlier and favorable action is solicited.
Thanking you,
Yours Sincerely,
Sd/-
(Shiva Gopal Mishra)
Secretary
Source : http://confederationhq.blogspot.in/
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Friday, 8 January 2016

Changes in the Payment of Bonus Act will benefit thousands of CG employees

Changes in the Payment of Bonus Act will benefit thousands of CG employees

The Payment of Bonus (Amendment) Bill, 2015 notified:Increase in the Eligibility Limit under clause (13) of Section 2 and Calculation Ceiling under Section 12 of the Payment of Bonus Act, 2015

The Payment of Bonus (Amendment) Bill, 2015 was passed by the Parliament in the just concluded Winter Session of the Parliament. The Payment of Bonus (Amendment) Act, 2015 has been published in the Gazette of India, Extraordinary on 1st January, 2016 as Act No. 6 of 2016. The provisions of the Payment of Bonus (Amendment) Act, 2015 shall be deemed to have come into force on the 1st day of April, 2014.

The Payment of Bonus (Amendment) Act, 2015 envisages enhancement of eligibility limit under section 2(13) from Rs.10,000/- per month to Rs.21,000/- per month and Calculation Ceiling under section 12 from Rs. 3500 to Rs.7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher. The Payment of Bonus (Amendment) Act, 2015 also mandates previous publication of draft subordinate legislations, framed under the enabling provisions under the said Act, in the Official Gazette for inviting objections and suggestions before their final notification.

The Government has been receiving representations from trade unions for removal of all ceilings under the Payment of Bonus Act, 1965. It is also one of the demands made by them during the country-wide General Strike held in February, 2013 and September, 2015. As the last revision in these two ceilings were made in the year 2007 and was made effective from the 1st April, 2006, it was decided by the Government to make appropriate amendments to the Payment of Bonus Act, 1965.

These changes in the Payment of Bonus Act, 1965 will benefit thousands of work force.

PIB
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Monday, 4 January 2016

Payment of Bonus Act Amendment Gazette Notification

Payment of Bonus Act Amendment Gazette Notification

The Gazette of India
EXTRAORDINARY
PART II — Section 1
PUBLISHED BY AUTHORITY
No. 6] NEW DELHI, FRIDAY, JANUARY 1, 2016/PAUSHA 11, 1937 (SAKA)
Separate paging is given to this Part in order that it may be filed as a separate compilation.

MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 1st January, 2016/Pausha 11, 1937 (Saka)
THE PAYMENT OF BONUS (AMENDMENT) ACT, 2015
NO. 6 OF 2016
[31st December, 2015.]
An Act further to amend the Payment of Bonus Act, 1965.
BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:—

1. (1) This Act may be called the Payment of Bonus (Amendment) Act, 2015.
(2) It shall be deemed to have come into force on the 1st day of April, 2014.

2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the principal Act), in clause (13), for the words ‘‘ten thousand rupees’’, the words ‘‘twenty-one thousand rupees’’ shall be substituted.

3. In section 12 of the principal Act,—
(i) for the words ‘‘three thousand and five hundred rupees’’ at both the places where they occur, the words ‘‘seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher’’ shall respectively be substituted;
(ii) the following Explanation shall be inserted at the end, namely:—
‘Explanation.—For the purposes of this section, the expression ‘‘scheduled employment’’ shall have the same meaning as assigned to it in clause (g) of section 2 of the Minimum Wages Act, 1948.’.

4. In section 38 of the principal Act, for sub-section (1), the following sub-section shall be substituted, namely:—

‘‘(1) The Central Government may, subject to the condition of previous publication, by notification in the Official Gazette, make rules to carry out the provisions of this Act.’’.

DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.
Authority: http://egazette.nic.in/

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Thursday, 24 December 2015

AIRF has demanded Payment of Arrear of Productivity Linked Bonus paid to Railwaymen for the year 2014-15

AIRF has demanded Payment of Arrear of Productivity Linked Bonus paid to Railwaymen for the year 2014-15

Payment of Arrear of Productivity Linked Bonus to Railwaymen for the year 2014-15

The Payment of Bonus (Amendment) Bill, 2015 was introduced in Lok Sabha by the Minister of State for Labour and Employment, Mr. Bandaru Dattatreya, on December 7, 2015. The Bill seeks to amend the Payment of Bonus Act, 1965. AIRF has demanded an Arrear on PLB for FY 2014-15.

Payment of Bonus

(Amendment) Bill 2015 has been passed by parliament

The Payment of Bonus (Amendment) Bill, 2015 was introduced in Lok Sabha by the Minister of State for Labour and Employment, Mr. Bandaru Dattatreya, on December 7, 2015. The Bill seeks to amend the Payment of Bonus Act, 1965.

The Act provides for the annual payment of bonus to employees of certain establishments (including factories and establishments employing 20 or more persons). Under the Act, bonus is calculated on the basis of the employee’s salary and the profits of the establishment.

Employees eligible for bonus: The Act mandates payment of bonus to employees’ whose salary or wage is up to Rs 10,000 per month. The Bill seeks to increase this eligibility limit to Rs 21,000 per month.
Calculation of bonus: The Act provides that the bonus payable to an employee will be in proportion to his or her salary or wage. However, if an employee’s salary is more than Rs 3,500 per month, for the purposes of calculation of bonus, the salary will be assumed to be Rs 3,500 per month. The Bill seeks to raise this calculation ceiling to Rs 7,000 per month or the minimum wage notified for the employment under the Minimum Wages Act, 1948 (whichever is higher).

Source: AIRF
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Wednesday, 23 December 2015

Bonus calculation ceiling revised from April 2014 – Arrears of bonus likely!

Bonus calculation ceiling revised from April 2014 – Arrears of bonus likely!

LS passes Bonus Bill; benefits to accrue from April 2014

Bonus-calculation-ceiling-revised-from-April-2014


The Lok Sabha on Tuesday passed a bill allowing doubling of wage ceiling for calculating bonus to Rs 7,000 per month for factory workers with establishments with 20 or more workers, with the benefits being applicable retrospectively from April 2014.

The Payment of Bonus (Amendment) Bill, 2015, was passed by a voice vote, with some members objecting to the raising of eligibility limit for payment of bonus from a salary of Rs 10,000 per month to Rs 21,000.
Replying to a debate on the legislation, Labour Minister Bandaru Dattatreya said the Government has ensured that the interest of workers are protected and there is no infringement on their justifys.

“Because of Bihar Elections this bill got delayed… The Prime Minister spoke to me and asked why should the benefits of this Act should accrue to workers from 2015. It should be made available from the April 2014,” he said while moving an official amendment to the Bill.

The official amendment provides that the benefits of the Act would be deemed to have come into force on April 1, 2014, instead of April 1, 2015.

Dattatreya said the Ministry has held 21 tripartite meetings with all central trade unions while arriving at a decision.

The Bill provides for enhancing monthly bonus calculation ceiling to Rs 7,000 per month from the existing Rs 3,500.

It also seeks to enhance the eligibility limit for payment of bonus from Rs 10,000 per month to Rs 21,000 per month.

“The Government’s paramount intention is to safeguard the interest of workers… There is no infringement of workers’ justifys and whatever the government does will be in the interest of workers,” Dattatreya said.
After the bill was passed, Deputy Speaker M Thambidurai, who was in the Chair, said the government should be congratulated for bringing the measure as also for effecting the benefits retrospectively.

Source: DDI News
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Wednesday, 9 December 2015

7th Pay Commission recommendations on Bonus Schemes

7th Pay Commission recommendations on Bonus Schemes
7thCPC_BONUS_Scheme_7CPC
www.7cpc.in
Bonus Schemes and Performance Related Pay

Bonus Schemes in the Central Government : Apart from DAE/DoS, there are bonus payments to Group 'B' (non-gazetted) and Group 'C' Central Government employees. The bulk of these employees are covered under the Productivity Linked Bonus (PLB) Scheme, which is implemented in Railways, Posts and Telecommunications, production units under the Ministry of Defence and other establishments

The system of Performance Linked Bonus (PLB) and Ad hoc Bonus have been prevalent in the Central Government for a fairly long time. Therefore, for the replacement of the existing bonus schemes with any other incentive scheme, prior consultation with the stakeholders was considered essential.

The Commission notes that since PRIS could not be implemented, it could not supplant the existing system of Performance Linked and Adhoc Bonus Schemes.

The Commission also recommends that the PRP should subsume the existing Bonus schemes. The Commission notes that there could be a time lag in implementing the Performance Related Pay by different departments. Till such time, the existing Bonus Schemes should be reviewed and linked with increased profitability/productivity under well-defined financial parameters

The Commission feels that there is strong need to create a culture of performance in government – from establishing standards of performance, to measuring, and promoting people based on performance. To emphasize on the culture of performance, the Commission has recommended that all the non-performers in the system should be phased out after 20 years.

The Commission has recommended that Performance Related Pay should be introduced in the government and that all Bonus payments should necessarily be linked with productivity.
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