Bonus calculation may rise for government employees under new rules
What's the story
The central government has announced that eligible employees with a monthly wage of over ₹7,000 will have their bonus calculated on either ₹7,000 or the minimum wage set by the government, whichever is higher. The decision was made under the Code on Wages, 2019. The move could have a meaningful impact on the eventual bonus payments if the suggestions are taken into account.
Bonus revision
Employee union demands revision of bonus ceiling
In light of the recent notification, a major employee union under the NC-JCM has demanded that the government revise the bonus payable ceiling for central government employees.
If accepted, this could greatly affect the final bonus payments.
Separately, Manjeet Singh Patel, President of the All India NPS Employees Federation, has also called for a higher minimum wage for bonus calculation.
Bonus proposal
Patel's proposal for uniform minimum wage application
Patel has proposed that if the government considers a minimum wage higher than ₹7,000 for bonus calculation, it should be applied uniformly to all central government employees.
He used an example of a basic salary of ₹18,000 and calculated the potential bonus at ₹17,763.
Patel has also appealed to the Pay Commission to set the bonus at ₹27,694 based on sector-wise minimum basic salaries.
Ceiling increase
NC-JCM urges an increase in bonus ceiling
The Staff Side of the National Council-Joint Consultative Machinery (NC-JCM) has also urged the government to raise the bonus payable ceiling for central government employees from ₹7,000 to ₹21,000.
The demand was made in a letter dated August 27, 2026.
This request is different from Patel's suggestion of using sector-wise minimum basic salaries for calculating bonuses.
Response awaited
Government's response and Dussehra date
The government's response to these demands is awaited.
Any changes in the calculation of bonuses for eligible central government employees will depend on the government's decision and applicable rules.
Notably, Dussehra, when the central government usually issues orders regarding PLB, Non-PLB, and Ad-hoc Bonus payments, falls on October 20 this year.