Govt’s Diwali gift: 30 lakh employees to get bonus, money to be credited by Dussehra

The Union Cabinet on Wednesday approved ₹3,737 crore bonus for central government employees. The bonus will benefit 30 lakh non-gazetted employees including those in autonomous central organisation, Union minister Prakash Javadekar said.

“Union Cabinet approves productivity linked bonus and non-productivity linked Bonus for 2019-2020. More than 30 lakh non-gazetted employees will be benefited by the bonus announcement and total financial implication will be ₹3,737 crores,” Union minister Prakash Javadekar said.

The bonus will be given in a single installment, through direct benefit transfer, before Vijayadashami, Javadekar said. “This will boost demand in the market,” he added.

The Centre has recently introduced LTC cash voucher scheme for the central government and public sector employees. An employee is eligible for LTC and leave encashment of 10 days for travel to home town or any other destination twice in a block of four years.

The cost of ticket is exempt whereas the leave encashment is taxable. As travel has become restricted in the wake of coronavirus pandemic, the central government employees now have an option to avail the cash equivalent of entitled LTC fare and leave encashment.

The employees are now eligible to purchase goods and services in lieu of the tax-exempt portion of the LTA or LTC.

But to avail these scheme, an employee needs to spend an an amount equal to the value of leave encashment and an amount three times of the cash equivalent of deemed fare, on purchase of items or avail services. The spending has to be done through the digital mode before March 31 on goods and services that attract GST of 12% or more. The employee shall obtain a voucher indicating the GST number and the amount of GST paid.

Union Cabinet also approved the adaptation of the Jammu & Kashmir Panchayati Raj Act, 1989. “This move will help establish all the three tiers of grass-root level democracy like in other parts of the country,” Javadekar mentioned.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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