In a move to spread festive cheer ahead of Diwali, the Narendra Modi-led government has given its approval for bonuses to Group C and non-gazetted Group B rank officials, which also includes paramilitary forces. The Ministry of Finance has specified the maximum limit for computing non-productivity linked bonuses (ad hoc bonuses) for central government employees at ₹7,000 for the fiscal year 2022-23.
Bonus Details
According to an office memorandum from the Department of Expenditure under the Ministry of Finance, a non-productivity linked bonus (ad hoc bonus) equivalent to 30 days’ emoluments for the accounting year 2022-23 has been granted to central government employees in Group ‘C’ and all non-gazetted employees in Group ‘B’ who are not covered by any productivity-linked bonus scheme.
Eligibility and Payment Calculation
The government has set certain conditions for the disbursement of this bonus. To be eligible for this bonus, employees must have been in service as of March 31, 2023, and should have rendered at least six months of continuous service during the fiscal year 2022-23. Pro-rata payment will be admissible to eligible employees for periods of continuous service ranging from six months to a full year.
The quantum of the non-productivity linked bonus (ad hoc bonus) will be calculated based on the average emoluments or calculation ceiling, whichever is lower. For the purpose of calculating the bonus for one day, the average emoluments for a year will be divided by 30.4 (the average number of days in a month), and this figure will then be multiplied by the number of bonus days granted.
Special Considerations
Casual labourers who have worked in offices following a 6-day workweek for at least 240 days each year for three years or more (206 days each year for three years or more in the case of offices observing a 5-day week) will also be eligible for this non-productivity linked bonus payment. The amount of the bonus payable for casual labourers will be calculated based on actual monthly emoluments.
All payments under these orders will be rounded off to the nearest rupee.
Budget Provisions and Expenditure
The government’s notification specifies that the expenditure for this ad-hoc bonus is to be met from within the sanctioned budget provision of the respective ministries and departments for the current year. The expenditure on this account will be debited to the relevant object head, following the Department of Expenditure’s notification dated December 16, 2022.
In sum, this announcement of Diwali bonuses brings much-needed financial relief and a sense of celebration to central government employees, while adhering to specific eligibility and payment criteria as well as budget considerations set by the government.
