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Central Government Employee? Modi govt has announced this Bonus before Diwali –  Check calculation, who will benefit

Modi government has announced non-performance linked bonus for central government employees. representational image/Pixabay

Central Govt Employee Non-Performance Linked Bonus 2018-2019: Here’s Good news for Central government employees in Group C and all non-gazetted employees in Group ‘B’, who are not covered by any Productivity Linked Bonus Scheme. Ahead of Diwali, the Union government has announced the Non-Productivity Linked Bonus (Ad-hoc) equivalent to 30 days of emoluments for the accounting year 2018-19, Ministry of Finance said in an Office Memorandum dated October 4, 2019. “The undersigned is directed to convey the sanction of the President to the grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) equivalent to 30 days emoluments for the accounting year 2018-19 to the Central Government employees in Group ‘C’ and all non-gazetted employees in Group ‘B’, who are not covered by any Productivity Linked Bonus Scheme,” the memorandum said.

The Office Memorandum (OM) further said that the ad-hoc Bonus announced in the order will also be applicable for eligible employees of Central para Military Forces and Armed Forces. It will also be “deemed to be extended to the employees of Union Territory Administration which follow the Central Government pattern of emoluments and are not covered by any other bonus or ex-gratia scheme.”

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Non-Performance Linked Bonus Calculation ceiling

The calculation ceiling fo ad-hoc Bonus will be monthly emoluments of Rs 7000, as revised w.e.f 01/04/2014 vide OM No.7/4/2014- E.III(A), dated 29th August, 2016, the OM said.

Non-Performance Linked Bonus: Terms and conditions

The benefits announced in the office memorandum will be subject to the following terms and conditions:

  • The memorandum said, “Only those employees who were in service as on 31.3.2019 and have rendered at least six months of continuous service during the year 2018-19 will be eligible for payment under these orders. Pro-rata payment will be admissible to the eligible employees for period of continuous service during the year from six months to a full year, the eligibility period being taken in terms of number of months of service (rounded off to the nearest number of months).”
  • The quantum of ad-hoc bonus will be calculated based on average emoluments/calculation ceiling whichever is lower.
  • Casual labour who have worked in offices following a six-day week for at least 240 days of each year for three years or more (206 days in each year for three years or more in case of offices observing 5-day week, will be eligible for ad-hoc bonus. Their ad-hoc bonus will be Rs 1200×30/30.4 = Rs 1184.21.

Ad-hoc bonus calculation for central government employees

According to the Office Memorandum, for calculating ad-hoc bonus for one day, the average emoluments in a month will be divided by 30.4 (average number of days in a month). This will, thereafter, be multiplied by the number of days of bonus granted.

For example: Take the calculation ceiling of monthly emoluments of Rs. 7000 (where actual average emoluments exceed Rs. 7000), ad-hoc bonus for thirty days would work out to Rs. 7000×30/30.4=Rs.6907.89 (rounded off to Rs.6908/-).

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Source: Financial Express