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Computation of Productivity Linked Bonus – Procedure thereof. (official digest)

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Official Railway Board digest, not the complete circular. Computation of Productivity Linked Bonus – Procedure thereof.

Text of the circular

Computation of Productivity Linked Bonus – Procedure thereof. (official digest)

RBE No. 166/2002 Date: 2002-09-20 Official source: https://indianrailways.gov.in/railwayboard/uploads/directorate/establishment/order_july-sep.jsp

Official Railway Board digest - gist only, not the complete circular.

Reference: E(P&A)II-2001/PLB-14 dt. 20.9.2002

Computation of Productivity Linked Bonus – Procedure thereof. Please refer to the clarification contained in this office letter of even number dated 13-2-2002 regarding the manner of computation of wages for the purpose of payment of Productivity Linked Bonus. In view of the doubts raised by some of the zonal Railways, the issue has been examined de-novo. In supersession of the instructions contained in the letter dated 13-2-2002 ibid, it has been decided that the following methodology will be followed for computing PLB in cases where staff are on leave on half average pay, extraordinary leave etc for part of the year:- a) The per day maximum wage to be reckoned during a particular month is to be arrived at by dividing the computation ceiling by the total number of days in the month. For instance, the maximum reckonable per day wage (in normal cases) in the month of January would be Rs. 2500/31 days which comes to Rs. 80.65 and the reckonable per day wage in respect of employees on leave on half average for the corresponding period would accordingly be Rs. 40.33. In the month, where the per day maximum reckonable wages are Rs. 80.65, an employee who had worked only for 15 days (the remaining period being extraordinary leave), the wages for that month would be Rs. 1210 (Rs.80.65 multiply 15). b) The total wages arrived at by adding the per day wage for the month are then to be rounded off to the nearest rupee. c) Similar calculation is to be done for the other months also. d) The wages so arrived at for the 12 months are then to be added together and thereafter divided by the number of days in the year which gives the per day wages is to be reckoned upto two decimal places. e) This figure is then to be multiplied by the number of Productivity Linked Bonus days declared for the financial year, rounded off to the nearest rupee, which gives the amount of Productivity Linked Bonus payable. It has also been decided by the Board that the methodology outlined above will apply only to cases to be decided after issue of these orders and that past cases where calculation of Productivity Linked Bonus had been made in term of the illustrations contained in letter No.E(P&A)II-79/PLB-1 dt. 1-7-1980 need not be reopened.

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