S.No.14 – Reduction of one day Productivity Linked Bonus (PLB) to the employees of OFB & DGQA

Standing Committee Discussion Points S.No.14 – Reduction of one day Bonus to the employees of OFB & DGQA

S.No.14 – Reduction of one day Productivity Linked Bonus (PLB) to the employees of OFB & DGQA under Department of Defence Production against Cabinet decision and Government orders.

Department of Expenditure had through their letter dated 24.01.2017 informed that one of the recommendations of the 6th CPC had been to introduce Performance Related Incentive Scheme (PRIS) by replacing the existing PLB Scheme. As this recommendation was being examined separately, a decision was also taken in October, 2008 that the PLB to be paid should not exceed what had been disbursed during the immediately preceding year. Though the recommendation of the 6th CPC was being examined separately, no decision could be reached in the matter and it was referred to 7th CPC. The 7th CPC, while recommending for introduction of PRP for all categories of Central Government employees has also recommended that PRP should subsume the existing bonus scheme Noting that there could be a time lag in implementing the PRP by different Departments, the existing Bonus scheme should be reviewed and linked with the increased profitability/productivity under well-defined financial parameters. As the 7th CPC has recommended for review of the existing scheme of PLB and its being subsumed in PRP, it is not possible to make any change in the existing practice of paying PLB by concerned administrative Department where PLB scheme is applicable.

The Staff-Side stated that there was already a Cabinet decision in this matter. It was stated that for the Defence establishments, the Hon’ble Raksha Mantri ji had decided to cap PLB to 41 days even if the entitlement would have been for more days. A few years ago the output was less and the PLB was limited to 40 days. However, on that basis every year it is being capped at 40 days even if the entitlement is for 41 days. This was said to be illegal and the Cabinet decision is not being implemented.

JS (Personnel) stated that in view of this new point about there being a Cabinet decision about the PLB formula of Defence Establishments, they would
re-examine the issue and take an appropriate view in the matter.

{Action: D/o Expenditure}