Diwali bonus for central government employees: Who is eligible and how much will they receive?
The Ministry of Finance has announced a Diwali bonus for central government employees, which is a pleasant gesture during the festive season.
Read more: Good news for central government workers and pensioners: Potential 4% salary growth
Employees will get a Diwali bonus in accordance with the decision taken on October 17, 2023, in an amount equal to 30 days' worth of basic wage.
An annual Diwali bonus (also known as an ad hoc bonus) is given to central government employees. It is not productivity-related. Employees must have had at least six months of continuous service during the fiscal year 2022–2023 in order to be eligible for the Diwali bonus. They must also have been employed as of March 31, 2023.
Calculation of bonus amount
The non-productivity-linked bonus amount is calculated using the employee's average payments or the calculation ceiling, whichever less is. Average payments are calculated by adding the employee's base wage, dearness allowance, and additional allowances and dividing the total by 12. The calculation ceiling is the maximum pay taken into account while calculating the bonus.
If your real monthly income is less than Rs.1200, the estimation will be determined by the actual monthly earnings.
Who will be rewarded with Diwali bonus?
The Diwali bonus will be given to all non-gazetted employees in Groups B and C. This means that approximately 3.8 million central government employees will get this incentive.
Employees in Groups B and C are often excluded from any productivity-related bonus programs. The Diwali bonus is a non-productivity connected bonus (ad hoc bonus) given to employees regardless of their individual performance.
It is a welcome development that eligible troops from the Central Para Military Forces and Armed Forces would also be eligible for this incentive. Employees in the Union Territory Administration welcome this announcement since it will help them meet their financial obligations in the festive season. It also represents an appreciation of their constant dedication and hard work.
The Diwali bonus will also apply to employees of the Union Territory Administration who follow the Central Government's compensation structure and are not covered by any other bonus or ex-gratia arrangement. This increase means that even more employees will reap the advantages of the bonus.
Eligibility criteria to receive bonus
The Finance Ministry's decision said that casual workers must have worked in offices that follow a six-day workweek for at least 240 days per year for three years or more (or 206 days per year for three years or more in the case of offices that follow a five-day workweek) in order to qualify. The bonus is calculated based on the employee's base income, with a maximum cap of 7,000.
Temporary workers who have worked in offices with a six-day workweek for a minimum of 240 days per year for three consecutive years or more (or 206 days per year for three consecutive years in offices with a five-day workweek) will be eligible for this ad hoc bonus remuneration.
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