In a festive bonanza for central government employees, the Department of Expenditure, Ministry of Finance, has approved a non-productivity linked bonus, also called ad-hoc bonus, for the year 2023-24.
The ministry has issued an order, dated October 10, granting this bonus equivalent to 30 days of employees’ emolument for FY2023-24.
Eligible employees include those in Group ‘C’ and non-gazetted employees in Group ‘B’ who are not part of any productivity-linked bonus scheme, the order said, adding that the maximum monthly salary used for calculating the bonus is set at Rs 7,000.
This bonus will also apply to Central Para Military Forces and Armed Forces personnel, as well as employees in Union Territories that follow the central government’s pay structure.
To qualify for the bonus, employees must have been in service as of March 31, 2024, and must have completed at least six months of continuous service during the year. Employees who have served for less than a full year will receive a pro-rata bonus based on the number of months worked.
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Calculating the Bonus Amount: How it works
The bonus amount will be calculated by dividing the average emoluments by 30.4, then multiplying that by 30 days. For instance, if an employee’s monthly pay is Rs 7,000, their bonus would total approximately Rs 6,908.
Casual laborers who have worked at least 240 days in a year for three consecutive years will also be eligible for this bonus, with an amount calculated on a basis of Rs 1,200 per month.
All payments will be rounded to the nearest rupee, and the expenses will be covered by the respective ministries and departments within their approved budgets, according to the order.
This announcement brings good news for central government employees as they celebrate Diwali, offering them additional financial support during the festive season.