8th Pay Commission: PLB and ad hoc bonus calculation changes proposed by employees

The Staff Side of the NC-JCM, which represents central government employees, has suggested that the 8th Central Pay Commission (CPC) should change the current rules for the calculation of productivity-linked bonus (PLB) and the non-PLB (ad hoc bonus) offered to Central Government employees.

Currently, there are two different systems for providing bonuses to central government employees:

• Productivity Linked Bonus: It applies to employees in Railways, Defence Production Units (Ordnance Factories), Naval Dockyards, Workshops and Depots under Army, Navy & Airforce, DGQA and DGAQA under DDP.

• Non-PLB or Adhoc Bonus: It applies to other Central Government Employees.

According to the Staff Side, both the PLB and non-PLB bonuses are calculated on monthly emoluments capped at ₹7,000 for 30 days.

In their memorandum to the 8th CPC, the Staff Side said this method of calculating the bonus is "irrational" and must be removed.

"At present the Productivity Linked Bonus (PLB) and Adhoc Bonus is calculated on the Monthly Emoluments capped at ₹7,000 for 30 days. This is an irrational stipulation and must be removed," Staff Side said.

Two changes suggested by the 8th CPC

The Staff Side highlighted that for the past few years, several employees have been getting less than 30 days of wages as PLB. The 8th CPC should provide a minimum of 30 days' wages as a bonus.

"Apart from this for the past few years it is observed that the Defence Civilian Employees of Ordnance Factories, EME Workshops etc., who are governed under the PLB scheme are getting PLB which is less than 30 days wages like 18 days PLB and 23 days PLB which is a clear violation of the Bonus Act and the Fundamental Principles of Bonus," the Staff Side said.

"It is proposed that the 8th CPC may recommend that even in the case of PLB the Minimum Bonus should not be less than 30 days emoluments. Even for the maximum number of days PLB there is a ceiling fixed by the Government in the case of Railways, Defence and Postal. Such ceiling should also be removed. We also propose that considering the contribution of all category of employees, bonus may be paid to all employees irrespective of Rank and Post, etc.," it added.

Please note that the Staff Side's suggestions are not binding on the 8th CPC.