Indian Government Approves Special Bonus for Defense Employees: Here’s What You Need to Know

In a significant move, the Indian government has approved a special Productivity Linked Bonus (PLB) for eligible defense civilian employees ahead of the festive season. The President has officially approved this bonus, which will benefit Indian Army and Army Ordnance Corps (AOC) staff for the financial year 2023-24. This bonus comes as a part of the government’s ongoing efforts to provide financial relief to its employees, including a recent hike in the Dearness Allowance (DA), which now stands at 53%.

Who Will Receive the Bonus?

The PLB bonus will be granted to eligible defense civilian employees of the Indian Army and AOC, particularly those who are part of Group B (non-gazetted) and Group C categories. The bonus will be awarded based on their performance under the PLB scheme. The total number of employees eligible for this bonus is substantial, with the Ministry of Defence issuing an official notification regarding the details.

How Is the Bonus and Salary Calculated?

The bonus will be calculated based on the average monthly salary of the employees, with the cap set at ₹7,000. The formula for calculating the bonus is simple: the employee’s average monthly salary will be divided by 30.4, and the resulting value will be multiplied by 30. For example, if an employee’s monthly salary is ₹20,000, their bonus would amount to approximately ₹19,737.

Casual Laborers and Bonus Payment

In addition to the regular employees, the casual laborers will also be eligible for the bonus. However, the bonus for casual workers will be calculated based on an estimated monthly wage of ₹1,200. For those earning less than ₹1,200, the bonus will be calculated based on their actual wage.

This move is a part of the ongoing efforts to provide financial assistance and boost employee morale during the Diwali festive season, further strengthening the bond between the government and its defense personnel.