BUSINESS

Check the Bonus Amount and Eligibility before the Holiday Season when the Central Government Announces Bonuses for Its Employees

The Diwali bonus was reinstated by the Central Government on Tuesday for its employees in the Group C, Group D, and certain Group B categories.

Employees in Group C, Group D, and contractual posts will be eligible for a bonus this year, subject to fulfilling certain service-related requirements, according to an official document from the Department of Expenditure under the Finance Ministry.

According to the memorandum, the highest incentive payment allowed by these directions would be Rs 7,000 per month, which is the equal of a monthly wage. Qualified members of the central paramilitary and armed forces will be eligible for the bonus.

According to the instruction, workers who were still working as of March 31, 2021 and who had a minimum of six months of service during the fiscal year 2020–2021 are eligible for this interim bonus.

Government-imposed requirements —

To be eligible for payment under these instructions, an employee must have been employed as at 31.3.2023 and have provided at least six months of continuous service throughout the fiscal year 2022–2023. For a period of continuous service throughout the year ranging from six months to a full year, eligible workers will be entitled for pro-rata payment; the qualifying period will be calculated based on the number of service months (rounded to the closest number of months).

The computation of the non-PLB quantum shall be based on the lowest of the average emoluments or calculation ceiling. The average annual salary will be divided by 30.4 (the typical number of days in a month) to determine non-PLB for one day. This will then be multiplied by the quantity of extra days awarded. For example, using a monthly salary cap of Rs 7000 (when real average salaries are higher than Rs 7000), non-PLB for thirty days would be Rs 7000×30/30.4- 6907.89 (rounded to Rs 6908).

Casual workers who have worked in workplaces that follow a 6-day workweek for at least 240 days annually for three years or longer—or 206 days annually for three years or longer—will be eligible for this non-PLB (ad-hoc bonus) payment. The total sum due is Rs. 1200×30/30.4, or Rs. 1184.21/- (rounded to Rs. 1184/-). The amount shall be determined based on real monthly emoluments in circumstances where the actual emoluments are less than Rs. 1200/- per month.

Rounding up any payments made in accordance with these directions to the next rupee.

According to the announcement from the Department of Expenditure dated December 16, 2022, the expenditure on this account shall be debitable to the appropriate object head.

According to the government, the costs associated with this ad hoc incentive must be covered from the authorized budget allocation of the relevant ministries and agencies for the current fiscal year.

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