7th Pay Commission recommendations on Bonus Schemes
Bonus Schemes and Performance Related Pay
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.
0 comments:
Post a Comment