7th Pay Commission: Central Government Announces Bonus For Employees
Bhubaneswar: The Central government on Wednesday decided to give Rs 3,737 crore as bonus to 30.67 lakh non-gazetted central government employees. This was announced by Minister of Information and Broadcasting Prakash Javadekar in a press conference.
According to Javadekar, the Union Cabinet took the decision to give productivity-linked bonus and non-productivity-linked bonus for 2019-2020. The bonus would be given in a single installment through direct benefit transfer before Vijayadashami, he added.
Around 16.97 lakh non-gazetted employees from different sectors like railways, posts, defence, EPFO, ESIC etc. who will get PLB and the financial implication would be Rs 2,791 crore. Apart from them, 13.70 lakh non-gazetted central government employees will get non-PLB of Rs 946 crore, the government release said.
Non-PLB or ad-hoc bonus is given to 13.70 lakh non-gazetted Central Government employees.
A total of 30.67 lakh employees would be benefited by the bonus announcement and total financial implication will be Rs 3,737 crore. #CabinetDecisions
— PIB India (@PIB_India) October 21, 2020
The Union government also has changed the base year for the consumer price index for industrial workers (CPI-IW) which will result in central government employees’ salary hike before Diwali.
Currently, the central employees are entitled to the Dearness Allowance at the rate of 17 per cent even though the government has postponed the increase in the DA in view of the coronavirus outbreak.
Recently, the government announced that the Central employees will receive Rs 10,000 advance in advance, which they have to return. However, this amount will be completely interest free and employees will have to refund this amount in 10 installments of Rs 1,000. This amount of Rs 10,000 advance will be available as a prepaid RuPay card. This amount can be spent till 31 March 2021.
A consumer price index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households.
A CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indices and sub-sub-indices can be computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e. adjust for the effect of inflation) the real value of wages, salaries, and pensions; to regulate prices; and to deflate monetary magnitudes to show changes in real values. In most countries, the CPI, along with the population census, is one of the most closely watched national economic statistics.