The government has decided to grant special performance incentives to officials equal to one month’s basic pay.
On Prime Minister’s directives, a summary for the grant of special performance incentives to the officers/officials of the Federal Government was submitted to the Cabinet by the Finance Division.
The Cabinet vide decision had directed on May 31, 2018 that a new policy for the grant of an honorarium may be presented to the newly elected government for approval.
Based on the above decision of the Cabinet, the Prime Minister on – 16th April. 2020 directed Finance Division to place a draft policy before the Cabinet. Furthermore, Financial Management and Powers of Principal Accounting Officers Regulations, 2021 warrants the formulation of a policy for the grant of honoraria. At present, there is no reward regime in place for high-performing individuals in the federal government.
This results in their demotivation and adversely impacts the efficient functioning of the government. Moreover, the work assigned to some of the divisions/offices is comparatively more laborious and demanding than others as it involves an over-arching role covering the whole of the federal government.
This does not mean that contribution by other Ministries/Divisions is less significant. Similarly, it would be an over-simplification to assume that the entire manpower employed in the former category of Ministries performs in a uniform manner.
In this backdrop, Finance Division proposed the reward regime/policy for grant of honoraria, once in a fiscal year, based on performance appraisal of the employees that;
The quantum of budget honorarium for each financial year shall be decided by the Finance Minister.