FinMin fixes ceiling for ad hoc bonus at Rs 7,000 for govt employees

The Finance Ministry has fixed the calculation ceiling for computing non-productivity linked bonus (ad hoc bonus) for central government employees at Rs 7,000, implying that an employee will be entitled to a maximum bonus of Rs 6,908.

"The quantum of Non-PLB will be worked out on the basis of emoluments/calculation ceiling whichever is lower," the Department of Expenditure said in its office memorandum.

Giving an illustration, the memorandum said that given the calculation ceiling of monthly emoluments of Rs 7,000 (where actual average emoluments exceed Rs 7,000), the non-productivity linked bonus (Non-PLB) for 30 days would work out to be Rs 6,908.

The office memorandum issued by the Expenditure Department said the President of India has granted non-productivity linked bonus (ad-hoc) bonus equivalent to 30-days emoluments for the accounting year 2019-20 to the central government employees in Group 'C' and all non-gazette employees in Group 'B' who are not covered by any productivity linked bonus scheme.

"The calculation ceiling for payment of ad-hoc bonus under these orders shall be monthly emoluments of Rs 7,000...," it said.

Employees of Central para-military forces and armed forces would be eligible for this ad-hoc bonus, the Department said.

Only those employees who were in service as on March 31, 2020, and have rendered at least 6 months of continuous service during the year 2019-20 will be eligible for payment under this order.

The Cabinet had on Wednesday decided to give Rs 3,737 crore bonus to 30.67 lakh central government employees to encourage spending during the festive season and add to demand in the economy.

It included productivity linked bonus to 16.9 lakh non-gazetted employees of commercial establishments like Railways, Post, Defence, EPFO, ESIC, among others, having financial implications of Rs 2,791 crore.

Non-PLB or ad-hoc bonus, which is given to non-gazetted central government employees, will benefit 13.70 lakh staff and will cost Rs 946 crore to exchequer.