40-day productivity-linked bonus approved for civilian defence employees for FY 2023-24. Check who is eligible | Mint

The Ministry of Defence, in a notable announcement, has confirmed that eligible civilian defence employees serving in the Army Ordnance Corps (AOC) and Indian Army will receive a 40-day productivity-linked bonus (PLB) for the financial year 2023-24. This decision, backed by presidential sanction, reflects the government’s recognition of the significant contributions made by these employees.

Who Qualifies for the Bonus?

The bonus applies specifically to Group B (Non-Gazetted) and Group C civilian employees of the Army Ordnance Corps and Indian Army. These employees fall under the established PLB scheme, which is designed to reward productivity and hard work. Casual labourers also qualify, though their payment calculation differs slightly from that of full-time employees.

Bonus Calculation Details

The PLB for eligible employees is calculated based on 40 days’ worth of wages, using an agreed formula that reflects the year’s working results. To standardize payment, the Ministry of Defence has set a calculation ceiling of ₹7,000. The exact formula for the bonus is 7,000 × 40/30.4, which applies to all eligible employees under the scheme.

For casual laborers, however, the bonus calculation considers an assumed monthly wage of ₹1,200. If a casual labourer’s actual wage is lower, their PLB will be based on their true monthly earnings rather than the assumed wage.

Budget Allocation and Financial Impact

The funds for this PLB payment will be sourced from the Defence Service Estimates under the respective budget headings for the current financial year, eliminating the need for additional financial allocations. This provision is fully covered in the budget for FY 2024-25.

The productivity-linked bonus aims to reward and motivate defence civilian employees, acknowledging their role in maintaining essential operations and supporting India’s defence infrastructure. With the festive season nearing, this announcement comes as welcome news, underscoring the government’s commitment to its personnel.