Calculation method for Productivity Linked Bonus (PLB)

Government of India declares Productivity Linked Bonus (PLB) for Group-C and Group-B (Non-Gazetted) employees every year. This year also the same has been declared at the rate of 60 days & 78 days for Postal Employees & Railway employees respectively.

Many times, general people have confusion about the exact amount of this PLB. There is a common idea that, if an employee has monthly salary is ₹50,000 then he gets PLB of ₹1,00,000 for 60 days i.e. two months. But the actual calculation is as follows.

Emoluments : This includes Basic Pay, Dearness Pay, SB Allowance, Dearness Allowance, Deputation (Duty) Allowance, Training Allowance. In case of drawal of salary exceeding ₹7,000/- (Rupees Seven Thousand only) in any month during the accounting year 2020-21, the emoluments shall be restricted to ₹7000/- per month only.

Average Emoluments per month for a regular employee is arrived at by diving by twelve, the total salary drawn during the year for the period from 01.04.2020 to 31.03.2021 by restricting each month salary to ₹7,000/- per month.

Average Emoluments per day =

Average Emoluments per month / 30.4 = 7000 / 30.4 = ₹230.26

Productivity Linked Bonus (PLB) =Average Emoluments per day x 60 days = ₹230.26 x 60 = ₹ 13,816/-

Overall Formula :

Average Emoluments x No.of Days of Bonus / 30.4 (Average days per month)

= ₹7000 x 60 / 30.4 = ₹13,816/-

Similarly, the PLB can be calculated for Railway Employees and they get it for 78 days.