7th Pay Update: Employees will get 40 days bonus and increase in DA, Here are details

The center’s decision has come as a relief to its employees. The government has announced an additional bonus to the central employees as pay matrix level 14. This bonus will be given in particular to the Indian Army employees, defence civilian employees, and army ordinance corps AOC. In this bonus, there is a provision of additional 40 days salary attached to it which will be beneficial to thousands of employees Let us know this scheme in detail.

Announcement of 7th Pay Commission Bonus.

Central government has recently come up with a circular, which states that the soldiers and defense civilian workers will be entitled to bonus in the amount of salary for forty working days. This is applicable to those employees who are members of Indian Army AOC and other civilian working in the Ministry of Defense. It has also been sanctioned by the President of this country, so the payment of this bonus shall soon be extended to the relevant employees.

Which employees will reap benefits of 7th Pay Commission?

Most of the benefits of this scheme will be directed towards handing out to Group B non gazetted Indian Army and Army Ordnance Corps AOC Cadres and defense civilian employees. The workers who are benefitting under the Productivity Linked Bonus PLB Scheme, will also be added to this scheme. This bonus will be based on the degree of performance as well as the effectiveness of the employees whose work qualifies for the bonuses.

Productivity Linked Bonus PLB Scheme.

This bonus is being given under the PLB scheme which focuses on improving the efficiency and the output level of all employees. The PLB scheme is applied only to those employees who are specifically covered ba that scheme. In this scheme, employees will be given additional bonus on the basis of their performance with will help to give proper return for the hard work done.

7th Pay Commission Background regarding Bonus

In calculating the bonus, basic salary of one month of the employee will be taken in consideration. There is some unique formula for that which says, average salary of the employee will be divided by thirty point four and multiplied by thirty. For instance, if the monthly salary of an employee is t w en y thousand rupees, then he is most likely to be given a sum of ninet y-seven thousand rupees as bonus. Under this, the upper ceiling of bonus has been kept at INR 7000.

In 7th Pay Commission Temporary workers are also catered in special ways

There is also a bonus scheme for temporary workers (casual labor). Their bonus will be calculated based on the presumed monthly salary of 1200 rupees. Where sActu al pays one is below rupees 1200, bonus will be as per actual pays. This has ensured that temporary workers also get their dues for the little work they do.

Dearness Allowance (DA) has Also been raised by the 7th Pay Commission

The central government has also revealed plans for an enhanced dearness allowance (DA) cut across various categories of employees. This increase will be applicable to employees on the 5th, 6th and 7th Pay Commission scales . The New sucker dealers scale will be gross across the board as follows:

This dearness allowance is paid to compensate the employees regarding the cost of living. It aims at alleviating the impact of inflation that will be beneficial towards the employees.

Formulation of Dearness Allowance under 7th Pay Commission

The dearness allowance is calculated on the basic salary of the employee. For instance, if the basic pay of an individual is ₹ 43,000, when the fresh DA rate is 246%, the dearness allowance will amount to ₹ 1,05,780. This type of calculation will enchance the financial benefits towards the employees and promote their purchasing power.

Conclusion

The decision taken by Government of India to enhance the bonus and dearness allowance components of the 7th Pay Commission for central government employees is in the right direction. This is beneficial not only for the employees of Indian Army and Defense Civilians but also for the other central employees.

This initiative taken by the government shows that the financial conditions are really improving for the employees and their hard work is being acknowledged. It is hoped that this will raise more the output and efficiency levels of the employees.

We are passionate to provide you fresh and authentic content regularly. We always share the accurate insights to our readers. We have 5+ year experience in online media fields. Feel free to contact NewsDesk: hellozeejagran@gmail.com

Leave a Comment