Saturday, July 26, 2025

Govt fixes calculation ceiling for Non-PL bonus at Rs 7,000

- Advertisement -

Govt fixes calculation ceiling for non-productivity linked bonus at Rs 7,000

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 the exchequer.

Editorial

Why TCS Deferred FY25 Salary Hike: Better Hike Ahead?

TCS had initially announced its annual salary hike during...

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Employee Benefits at India’s Big 4 Firms Deloitte, PwC , EY, KPMG

The Big 4 firms; Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst...

TCS Announces 4-8% Salary Hike for FY25, Lowest in Last 4 Years

Tata Consultancy Services (TCS), India's largest IT services provider,...

Must Read

OpenAI, Chat GPT firm sued for ‘stealing’ people’s data

OpenAI, a Chat GPT firm has been sued in...

Poonawalla Fincorp CEO Vijay Deshwal steps down

Poonawalla Fincorp Limited on Friday said its CEO Vijay...

Productivity improvement is not about working harder or faster

Better Reflect and Rapid, Than Fast and Furious! Productivity improvement...

Salesforce to Cut Over 1,000 Jobs Amid AI Expansion

Salesforce, the renowned customer relationship management (CRM) platform, is...

Zomato co-founder Mohit Gupta resigns

Indian multinational restaurant aggregator and food delivery company, Zomato Ltd confirmed...

Link your UAN with Aadhaar before August 31, 2021, Government of India

The government has announced to link your UAN (Universal...

Scaler ramps up hiring, to hire over 600 employees by Dec 22

Scaler (by InterviewBit), a tech upskilling startup has announced...

India Inc expects hiring to witness 31% growth in 2022

Taggd, in association with the Confederation of Indian Industry...

Related Articles

SightsIn Plus
SightsIn Plushttps://sightsinplus.com/
SightsIn Plus is an India’s leading high-quality people-focused monthly HR Magazine and provides up-to-date HR News, Leadership Announcements, Best HR Practices and Insights by Global CHROs, CEOs, HR Advisors, Business Managers and HR Heads on topics of interest to HR professionals. To subscribe SightsIn Plus, HR Magazine please visit- https://sightsinplus.com/subscribe/