The Sixth 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 Central Government employees. The Government of India accepted the recommendations and decided that the detailed guidelines will be issued by the nodal ministry. Performance-Related Incentive will be payable taking into account the performance of the organization and employee during the period under consideration. It is based on the principle of differential reward for differential performance.
The following document is work-in-progress and comments from stake-holders are invited for further consideration and improvement.