how we add or remove readonly attribute from textbox on clicking radion button in cakephp using jquery?

In your Case you can write the following jquery code:

$(document).ready(function(){

   $('.staff_on_site').click(function(){

     var rBtnVal = $(this).val();

     if(rBtnVal == "yes"){
         $("#no_of_staff").attr("readonly", false); 
     }
     else{ 
         $("#no_of_staff").attr("readonly", true); 
     }
   });
});

Here is the Fiddle: http://jsfiddle.net/P4QWx/3/

You could use prop as well. Check the following code below.

$(document).ready(function(){

   $('.staff_on_site').click(function(){

     var rBtnVal = $(this).val();

     if(rBtnVal == "yes"){
         $("#no_of_staff").prop("readonly", false); 
     }
     else{ 
         $("#no_of_staff").prop("readonly", true); 
     }
   });
});