The Ministry of Defence has announced a 40-day productivity-linked bonus (PLB). This bill covers all eligible civilian employees in the Army Ordnance Corps (AOC) and Indian Army for the 2023-24 financial year.
This decision, backed by presidential sanction, acknowledges the essential contributions of these employees to national defence.
The bonus applies to Group B (Non-Gazetted) and Group C civilian employees covered under the PLB scheme. Casual labourers in these groups also qualify, though their bonus is calculated differently. For full-time employees, the bonus is based on a wage ceiling of Rs 7,000, using a formula of 7,000 × 40/30, resulting in a bonus amount of Rs 9,210.6, typically rounded to Rs 9,211.
Casual workers, on the other hand, have their bonus calculated with an assumed monthly wage of Rs 1,200, or their actual monthly wage if it is lower. Using the same formula, a casual worker with an assumed monthly wage of Rs 1,200 would receive a bonus of Rs 1,578.96, rounded to Rs 1,579. This differentiated calculation approach ensures that both full-time and casual employees are rewarded proportionally for their contributions under the productivity-linked bonus scheme.
Funds for the bonus are sourced from the Defence Service Estimates for FY 2024-25, so no additional budget is required. The PLB aims to reward and motivate civilian defence employees, recognising their role in supporting India’s defence operations. This timely announcement adds to the festive season’s cheer and reinforces the government’s commitment to its workforce.
