Diwali Gift for Government Employees! Festive Bonus Approved for Central Government Employees for 2023-24

In a major relief for central government employees ahead of the festive season, the Department of Expenditure under the Ministry of Finance has approved the grant of a non-productivity linked bonus, commonly referred to as an ad-hoc bonus, for the fiscal year 2023-24. This decision brings significant financial benefits for employees, especially as the country prepares for upcoming festivities like Diwali.

Bonus Details: Equivalent to 30 Days’ Emoluments

According to the order issued on October 10, the approved ad-hoc bonus will be equivalent to 30 days’ worth of emoluments for eligible employees. This bonus will be calculated based on an employee’s basic pay plus any dearness allowance (DA) they receive.

Importantly, the maximum monthly salary used for bonus calculation is capped at Rs 7,000. This means that even if an employee’s actual salary exceeds Rs 7,000 per month, the bonus will be calculated as if their salary was Rs 7,000. Employees who fall under this bracket can expect a bonus of roughly Rs 6,908. Also Read: New pension guidelines for central govt employees, Govt has released new NPS contribution rules

Who is Eligible for the Bonus?

Eligibility for the ad-hoc bonus extends to employees in Group ‘C’ and non-gazetted Group ‘B’ positions who are not already covered by any productivity-linked bonus (PLB) scheme. Group ‘C’ generally consists of lower-level employees, while non-gazetted Group ‘B’ employees include those in supervisory roles who do not hold high-level administrative positions.

The bonus also applies to Central Para Military Forces personnel, Armed Forces personnel, and employees working in Union Territories that follow the central government’s pay structure. This means that employees of various departments and services across India will benefit from this order.

Eligibility Criteria: Service Requirements

To qualify for this ad-hoc bonus, employees must meet certain criteria regarding their service duration. Specifically:

• Service Duration: Employees must have been in service on or before March 31, 2024, and they must have completed at least six months of continuous service during the fiscal year 2023-24.
• Pro-Rata Bonus: Employees who have not worked the full year will still be eligible but will receive a pro-rata bonus based on the number of months they have served. For example, if an employee has only worked for six months, they will receive half of the bonus amount.

Calculation Method: How the Bonus Will Be Computed

The calculation method for the bonus is straightforward but follows a specific formula. The total bonus amount is computed by dividing the average monthly emoluments by 30.4 and then multiplying the result by 30 days.

For instance, if an employee’s salary is Rs 7,000 per month, the calculation would work as follows:

Bonus Amount =
(7,000 / 30.4) × 30 = 6,908 approximately

This formula ensures that employees receive a bonus that closely mirrors their monthly earnings, although capped at Rs 7,000 for calculation purposes.

Special Consideration for Casual Laborers

In a positive development for casual laborers, the order specifies that those who have worked for at least 240 days in a year for three consecutive years will also be eligible for a bonus. This bonus will be calculated at a rate of Rs 1,200 per month, ensuring that temporary or contract workers are not left out of the festive rewards.

Budget Allocation and Payment Details

The payment of the ad-hoc bonus will be managed by the respective ministries and departments. Each department will fund the bonus from its existing approved budget, meaning no additional financial burden will be created. The ministry has further clarified that all payments will be rounded to the nearest rupee for administrative ease.

Ministries and departments are expected to issue specific instructions to ensure timely disbursement of this bonus to eligible employees.

A Festive Boost: Financial Support for Central Government Employees

This decision to grant an ad-hoc bonus for the financial year 2023-24 has been welcomed by central government employees as it comes at a time when many are preparing for festive celebrations. The bonus offers much-needed financial support, particularly during the festive season, which often involves extra expenditures for families.

With Diwali just around the corner, this announcement is likely to bring cheer to thousands of employees across various departments, including the Armed Forces and Central Para Military Forces. The bonus will not only boost morale but also help meet additional financial demands during the festive period.

Significance of the Decision

This ad-hoc bonus is an important annual tradition for central government employees who are not covered by productivity-linked bonus schemes. It ensures that lower-tier employees and those in non-gazetted roles receive financial recognition for their service, despite not being eligible for performance-based bonuses.

The government’s decision to approve this bonus showcases its commitment to supporting its workforce during key times of the year, such as the festive season. It also highlights the significance of ensuring that all employees, whether regular or casual, receive equitable treatment in terms of financial benefits.

This move is expected to provide relief to thousands of households, encouraging employees to celebrate the festive season with more security and confidence.