Bonus Schemes in the Central Government : Apart from DAE/DoS,
there are bonus payments to Group `B’ (non-gazetted) and Group `C’
Central Government employees. The
bulk of these employees are covered under the Productivity Linked Bonus (PLB) Scheme, which is implemented in Railways, Posts and Telecommunications, production units under the
Ministry of Defence and other establishments.
The system of
Performance Linked Bonus (PLB) and Ad hoc Bonus have been prevalent in the
Central Government for a fairly long time. Therefore, for the
replacement of the existing bonus schemes with any other incentive scheme, prior
consultation with the stakeholders was considered essential.
The
Commission notes that since PRIS could not be implemented, it could not
supplant the existing system of Performance Linked and Adhoc
Bonus Schemes.
The
Commission also recommends that the PRP should subsume the existing
Bonus schemes. The Commission notes that there could be a time lag in
implementing the Performance Related Pay by different departments. Till such time, the existing
Bonus Schemes should be reviewed and linked with increased
profitability/productivity under well-defined financial parameters
The Commission feels that there is strong need to create a culture
of performance in government – from establishing standards of
performance, to measuring, and promoting people based on performance. To
emphasize on the culture of performance, the Commission has recommended that
all the non-performers in the system should be phased out after 20
years.
The Commission has recommended that Performance Related Pay should
be introduced in the government and that all Bonus payments should
necessarily be linked with productivity.
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