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Before the upcoming festive season (Dussehra and Diwali), a big and encouraging news is coming out for lakhs of non-gazetted employees and pensioners of the central government. The government is seriously considering the demand to increase the calculation ceiling of Non-Productivity Linked Bonus (Ad-hoc / Non-PLB Bonus) given to Group 'B' (Non-Gazetted) and Group 'C' employees of the Central Government from the existing ₹ 7,000 to the minimum basic pay (Basic Pay) i.e. ₹ 18,000 to ₹ 21,000.

If the Finance Ministry gives the green signal to this revised proposal, then just before Dussehra this year, there can be a bumper increase of up to three times (3x) in the bonus amount received by the employees.

The Central Government gives ad-hoc bonuses equal to 30 days' emoluments to its employees every year:

• Current Count Ceiling: At present the upper limit of monthly salary for calculating bonus ₹7,000 per month It is fixed.

• Current Formula:

  $$\text{Bonus amount} = \frac{\text{Monthly salary (maximum ₹7,000)} \times 30 \text{ days}}{30.4} \approx ₹6,908$$

• Staff Argument: Employees and unions say that despite the minimum basic pay being fixed at ₹ 18,000 in the 7th Pay Commission, the ceiling of bonus is stuck at the level of ₹ 7,000 at the time of the old 6th Pay Commission, due to which the employees do not get benefits as per the actual salary.

Employees organizations (NC JCM and other unions) have submitted memorandum to the Finance Ministry demanding that the bonus be calculated at the actual minimum basic pay (₹18,000) or at the revised level (approximately ₹21,000):

If the government accepts the limit of ₹21,000, then approximately Rs. 6,908 will be deposited into the account of every eligible employee during the festive season instead of ₹ 6,908. Cash bonus amount up to ₹21,000 There will be credit.

This ad-hoc (Non-PLB) bonus is mainly given to those central employees who are not covered under the scope of Productivity Linked Bonus (like Railways, Postal, Defense Production):

• All jawans and non-gazetted posts of central paramilitary forces (CRPF, BSF, CISF, ITBP, SSB etc.).

• All Group 'C' and Group 'B' non-gazetted employees of the Central Secretariat, Ministries and various Central Departments.

• Eligible administration employees of Union Territories (UTs).

• Employees of Central Autonomous Bodies who follow the pay structure of the Central Government.

As per tradition, the Central Government issues official order (OM – Office Memorandum) of bonus every year around Navratri and Durga Puja/Dussehra (late September or first week of October) so that employees can get the amount before Diwali shopping.

Employee unions believe that in view of the recent buzz of formation of the 8th Pay Commission and the pressure of inflation, the government can give a big gift of amendment in the bonus ceiling to please the employees. Now all eyes are on the final decision of the Department of Expenditure of the Finance Ministry.