Bonus Calculation | Productivity Linked bonus, Ad hoc Bonus, Ceiling, and Eligibility
The Tamil Nadu Government will soon announce a ‘Pongal Parisu’ for its employees and pensioners for the year 2023! The C and D group regular and temporary staff, who are in regular time scales of pay, employees of local bodies and aided educational institutions including teachers will get the bonus for the year 2023 soon! [View More]
Every Year Bonus Announcements for the below categories of employees in India.
- Bonus for Central Government Employees
- Bonus for Railway Employees
- Bonus for Postal Employees
- Bonus for Ordnance Employees
Every year almost all Government employees (including Central, State, Defence, Railway, and Public Sector) are getting bonuses for Diwali or Durga Puja festival. Bonus is provided in two segments, one is Productivity Linked Bonus and Non-Productivity Linked Bonus. Non-PLB is also called Ad-Hoc Bonus.
EPFO Productivity Linked Bonus 2022
60 days Productivity Linked Bonus admissible for the eligible Group C and Group B (Non-gazetted) employees of Employees’ Provident Fund Organization – Orders issued. [Click to read more]
Ad-Hoc Bonus 2022 – Non-PLB for Central Govt Employees 2022
Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2021-22 | Finance Ministry Order dated 06.10.2022. The calculation ceiling of monthly emoluments of Rs. 7000, Non-PLB (Ad-hoc Bonus) for thirty days would work out to Rs. 7000 × 30 / 30.4 = 6907.89 rounded off to Rs.6908. [Click to read more]
Payment of Productivity Linked Bonus for the Accounting year 2021-22 equivalent of emoluments of 60 (Sixty)Days to the employees of the Department of Posts in MTS, /Group ‘C’ and non-gazetted Group ‘B’. Ex-gratia payment of bonus to Gramin Dak Sevaks [Click to read more]
Productivity Linked Bonus (PLB) equivalent to 78 (Seventy-Eight) days of wages without any ceiling on wages for eligibility for the financial year 2021-22 to all eligible non-gazetted Railway employees (excluding all RPF/RPSF personnel) [Click to read more]
Ordnance Factory Bonus 2022
The General Secretary of Bharatiya Pratiraksha Mazdoor Sangh (BPMS) writes a letter to the Secretary (P) Department of Defence Production regarding the Productivity Linked Bonus for the Ordnance factory employees, DGQA, and DGAQA for the year 2021-11. The letter insists that the payment of PLB as per the existing formula to the eligible employees as early as possible!
Grant of Ad-hoc Bonus to West Bengal State Government Employees and some other categories of Employees for the year 2021-2022: The State Government employees who are not covered by any of the productivity linked Bonus Schemes and whose revised emoluments did not exceed Rs.37,000 per month as on 31st March 2022 will be entitled to an ad-hoc bonus for the accounting year 2021-2022 at the rate of Rs.4,800 per head. The upper eligibility ceiling of Rs.37,000 p.m. as of 31st March 2022 will be applicable irrespective of whether the emoluments are drawn in the pre-revised or revised structure of pay or on fixed/consolidated contract pay. [View Bonus Order]
Diwali Bonus for Kendriya Vidyalaya Teachers and Staff – Minister Replied in Parliament on 1.8.2022: The Government issues order / Office Memorandum (OM) for payment of Adhoc bonus to eligible Central Government employees. In view of the financial implications of extending the Adhoc bonus to various Autonomous Bodies, no such order / OM was issued by the Government for the accounting year 2015-16 and onwards.
Kendriya Vidyalaya Sangathan
18, Institutional Area
Shaheed Jeet Singh Marg
New Delhi – 16
F.No.125-8/2003-04/KVS (Budget)
Dated: 28-10-15
A Copy of Government of India, Ministry of Finance, Department of Expenditure, Office Memorandum No.7/22/2008/E III (A) dated 26th October 2015 regarding the Grant of Non-Productivity Linked Bonus (Ad-hoc bonus) to Central Government Employees for the year 2014-15 – Extension of orders to Autonomous Bodies is forwarded herewith for information and necessary action.
sd/-
(S. Muthusivam)
Asstt.Commissioner(Fin.)
THE PAYMENT OF BONUS ACT, 1965
INTRODUCTION
The practice of paying bonuses in India appears to have originated during the First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917. In certain cases of industrial disputes, demand for payment of bonus was also included. In 1950, the Full Bench of the Labour Appellate evolved a formula for the determination of bonus. A plea was made to raise that formula in 1959. At the second and third meetings of the Eighteenth Session of the Standing Labour Committee (G. O.I.) held in New Delhi in March/April 1960, it was agreed that a Commission be appointed to go into the question of bonus and evolve suitable norms. A Tripartite Commission was set up by the Government of India to consider in a comprehensive manner, the question of payment of bonus based on profits to employees employed in establishments and to make recommendations to the Government. The Government of India accepted the recommendations of the Commission subject to certain modifications. To implement these recommendations the Payment of Bonus Ordinance, 1965 was promulgated on 29th May 1965. To replace the said Ordinance the Payment of Bonus Bill was introduced in the Parliament. [Click to view the PDF]
Bonus Calculation Formula of Central Govt Employees
(Monthly Emoluments x 30) / 30.4
To illustrate, taking the calculation ceiling of monthly emoluments of Rs. 7000 (where actual average emoluments exceed Rs. 7000), Non-PLB (Ad-hoc Bonus) for thirty days would work out to Rs. 7000 × 30 / 30.4 = Rs.6907.89 (rounded off to Rs.6908/-).