Employees Seek Higher Bonus Calculations
Key Highlights
- Employee organisations are seeking changes to the existing bonus calculation formula.
- The current calculation uses a ₹7,000 monthly ceiling.
- Proposed changes could link bonus calculations to the ₹18,000 minimum basic pay.
- A 30-day bonus could rise to around ₹17,763 under the proposed formula.
- Under an estimated 8th Pay Commission minimum basic pay, the bonus could exceed ₹25,600.
- Railway employees receiving 78-day PLB could see a substantial increase if the ceiling is removed.
- Final changes will depend on government decisions and the implementation of the 8th Pay Commission.
New Delhi, September 5, 2026: Central government employees could see a significant increase in their Diwali bonus if long-standing demands to change the existing bonus calculation formula are accepted.
Employee organisations have been seeking the removal of the ₹7,000 ceiling currently used for calculating Non-Productivity Linked Bonus (NPLB) and Productivity Linked Bonus (PLB). They argue that the ceiling is outdated and no longer reflects the current basic pay structure of government employees.
Under the existing system, even employees whose minimum basic pay under the 7th Pay Commission is ₹18,000 may have their bonus calculated using a notional salary of only ₹7,000.
Under the current 30-day bonus calculation, this results in a payment of roughly ₹6,908 to ₹7,000. Employee organisations, including representatives associated with the National Council-Joint Consultative Machinery, have proposed that the calculation instead be linked to the current minimum basic pay of ₹18,000 or the revised minimum pay that may be determined under the 8th Pay Commission.
If the ₹18,000 minimum basic pay is used as the calculation base for a 30-day bonus, the amount could reach approximately ₹17,763. This would represent a substantial increase over the existing payout.
The potential increase could be even larger if the calculation is linked to the minimum basic salary expected under the 8th Pay Commission. Based on estimates cited in the report, a minimum basic pay of ₹26,000 to ₹34,500 could result in a 30-day bonus exceeding ₹25,600.
Railway employees could also benefit significantly from such a change. Non-gazetted railway employees currently receive a 78-day Productivity Linked Bonus. If the existing ceiling is removed, their bonus could potentially rise from around ₹17,951 to more than ₹46,000, based on the proposed calculation.
Employees in the Postal Department and ordnance factories could also see higher bonus payments if the formula is revised. Similarly, Group C and non-gazetted Group B employees across various ministries receiving a 30-day ad-hoc bonus could benefit from a higher calculation base.
However, these figures remain based on proposed changes and estimates. No final decision on removing the ₹7,000 ceiling or adopting a new bonus formula has been confirmed. The actual benefit will depend on the government’s decision and the eventual recommendations and implementation of the 8th Pay Commission.
