Details of Central Government’s Performance Bonus Scheme – When will PRIS Scheme Begin, who is Eligible, How will the performance be measured, Calculation of Incentive, Distribution of Incentive and Implementation Details
Central Government is about to launch the performance linked incentive scheme. Minister Jitender Singh has mentioned that the central government has given a positive response towards the recommendations made by 6th pay commission. Most important scheme is the Performance related Incentive Scheme, which favours to provide bonus to the government employees according to their performance.
Many private companies provide bonus to the employees who perform well and help the company to complete the goals. Similarly, with aim of motivating the employees and reaching the desired goals, the Incentive Scheme is to be launched by the Central Government.
In this article you will find detailed description about this scheme.
Performance Related Incentive Scheme (PRIS) – Origin
The 6th Pay Commission in paragraph 2.5.8 of its report recommended introduction of a new performance based pecuniary benefit, over and above the regular salary, for the CentralGovernment employees. Indian Government accepted the recommendations. The Govt. have further decided that the detailed guidelines regarding the scheme will be issued by the nodal ministry.
What is Performance Related Incentive (PRI)
Performance Related Incentive is a variable part of pay which is awarded to eligible entities on the basis of their performance. This incentive will be offered at the individual employee level as well as at the team/group level.
PRI should not be confused with other service based increments and various types of allowances.
- Departments scoring a rating of more than 70 percent on its Results-Framework Document(RFD)
- Departments must have installed bio metric systems by February 15,2012 to ensure the punctuality of the officials
- The Department must have prepared RFD for two full years
PRIS- Measuring Departmental Performance
Performance will be measured in terms of achieving goals and getting the desired output. For example – If any department concerned with reducing criminal activities, successfully reduces the crime rate, It’s performance will be measured in terms of reduction of crime rate.
Following are 6 key Steps in Measuring Performance Under Performance Related Incentive Scheme
- Selecting Key Department Objectives
- Assigning Relative Weights to Objectives
- Specifying Required Actions to Achieve the Objective
- Specifying Success Indicators
- Specifying Targets for Success Indicators
- Performance Evaluation
Calculation of Incentive to be distributed –
Total incentive to be given to the department will be calculated using the following formula
Distribution of Incentive (Bonus) To Employees by the Department
The process of distributing incentive to the Employees has been categorized as –
- Head of Department (Secretory)
- Head of Division (Joint Secretory)
Incentive to be offered to Head of Department (Secretory) –
The Secretary will get an incentive that is totally correlated with the performance of the department under her /his management. As depicted in Table 3, in Phase 1 the HOD will get a maximum of 20 % of his / her basic salary if the Composite Score at the end of the year is 100%. There will be no payment to the HOD if the value of the Composite Score is 70% or less.
Incentive to be offered to Head of Division (Joint Secretory)
In this case the bonus will depend on following factors –
- 30 % on Departmental performance as measured by the Composite Score for the Departmental Performance Measurement System, and
- 70 % on Divisional performance as measured by the Composite Score for the Divisional Performance Measurement System.
Incentive to be offered to others –
- The weight of departmental composite score should be in the range of 5%-15%. The lower level employees should be closer to 5%.
- The maximum level of PRI should not exceed the percentage of basic salary as indicated in Table
- The performance related incentive scheme should be approved by the Secretary at the beginning of the year.
- Each division will have the flexibility to adopt a different PRI scheme.
Exact Date of Launch of Central Gov.’s Bonus Scheme –
The exact date is not mentioned anywhere, however it has been told that the scheme will be launched very soon.
What are your views about this Central Govt’s Employee/Department Bonus Scheme ? Leave your comments and queries in the comment section below