Bonus to Civilian Employees of Defence Production Establishments

No.10(1)/2020-D (Estt/NG)
Government of India,
Ministry of Defence,
(Deptt. Of Defence Production)

New Delhi
Dated: the 23rd Oct. 2020

To

The Chairman,
Ordnance Factory Board,
1OA, S. K. Bose Road.
Kolkata-700 001.

The Controller General of Defence Accounts, New Delhi.
The Director-General of Quality Assurance, New Delhi.
The Director-General of Aeronautical Quality Assurance, New Delhi.

Subject: Payment of Productivity Linked Bonus to Civilian Employees of Defence Production Establishments for the year 2019-20.

Madam / Sir,

I am directed to refer to this Ministry’s letter No.48(4)/98/D(B&C) dated 27th July 2000 on the above subject and to convey the sanction of the President to payment of Productivity Linked Bonus for the year 2019-20 equivalent to 37 days wages to the eligible employees in Defence Production Establishments as mentioned therein with an overall ceiling of wages of Rs.7000/- per month. PLB is to be calculated taking the average number of days per month as 30.4 days.

2.The casual labour who has worked for at least 240 days, in each year, for 03 years or more, will be eligible for this PLB payment. The amount will be paid on a notional monthly wage of Rs. 1200/-. In the case where the actual emoluments fall below Rs.1200/- per month, the amount will be calculated on actual monthly emoluments. All payments under these orders will be rounded off to the nearest rupee.

3.The above sanction is subject to the following condition:

(a) OFB will submit a monthly status report on the progress achieved to review the formula for calculation of PLB which otherwise would have been reviewed after three years from implementation i.e. from the accounting year 1999-2000.

(b) GMs of each of the respective factories should submit the Certificate regarding standard man-hours for jobs whenever there is a change in production processes or when new labour-saving machines are introduced, incorporating the following details :

(i)Standard Man Hours before the installation of CNC Machines.
(ii)Standard Man Hours after the installation of CNC Machines.
(iii)Difference between the above two leading to savings in Standard Man Hours.

In the event of more than one CNC Machine being installed on two different occasions. each time figures are to be updated for additional subsequent addition of CNC Machine.

(c) The financial implications on this account would be met from your existing sanctioned Budget of FY 2020-21 without any additionality from the Government.

4.It is also advised that formula for working out PLB may be revisited/re-examined for future years. However since PLB for the current year has been computed as per the approved formula, the proposal of OFB for Payment of 37 days PLB for 2019-20 to the 75016 eligible employees of OFB, DGQA, DGQAQA and DAD working in OFB is sanctioned.

5.The expenditure will be debited to Major Head 2079 of the Defence Service Estimates (Ordnance Factories) from the existing budget provisions for the F.Y. 2020-21 and to the respective Heads to which the pay and allowances of employees of allied establishments are debited.

6.This issues with the concurrence of Ministry of Finance vide ID No.7-39/2007-E-III(A). dated 21.10.2020/eFTS 1506055/2020 and MoD (Finance Division) vide N-23 in MoD File No. 10(I)/2020-D(Estt/NG).

(Maisha Bhatnagar)
Deputy Secretary to the Govt. of India