In a welcome development for central government employees during the festive season, the Ministry of Finance has declared a Diwali bonus for them. As per the decision made on October 17, 2023, employees will receive an amount equivalent to 30 days’ basic salary as a Diwali bonus.
Determining eligibility for the bonus amount
The Diwali bonus is an annual non-productivity linked bonus (ad hoc bonus) granted to central government employees. To qualify for the Diwali bonus, employees must have been in employment as of March 31, 2023, and should have provided a minimum of six months of uninterrupted service during the 2022-23 fiscal year.
The order from the Finance Ministry read, “The casual labourers who have worked in offices following a six days week for at least 240 days for each year for three years or more (206 days in each year for three years or more in the case of offices observing a five-day week) will be eligible.”
How much would be the bonus amount?
The bonus amount is determined based on the employee’s basic salary, with a maximum cap of ₹7,000.
The calculation of the non-productivity-linked bonus amount is based on the employee’s average emoluments or the calculation ceiling, whichever is lower. Average emoluments are derived by summing the employee’s basic salary, dearness allowance, and other allowances, then dividing by 12. The calculation ceiling represents the maximum emoluments considered for computing the bonus.
To compute the bonus for a single day, the annual average emoluments are divided by 30.4 (the average number of days in a month). This result is then multiplied by the number of bonus-eligible days granted.
Temporary workers who have provided their services in offices operating on a six-day workweek for a minimum of 240 days annually for three consecutive years or more (or 206 days annually for three continuous years in offices with a five-day workweek) will qualify for this ad-hoc bonus remuneration. For situations where the real monthly earnings are less than ₹1200, the calculation will be based on the actual monthly emoluments.
Who would receive the Diwali bonus?
The Diwali bonus will be distributed to all non-gazetted employees in Group-B and Group-C categories. This implies that around 3.8 million central government employees will be recipients of this bonus.
Group B and Group C employees are typically excluded from any productivity-linked bonus programs. The Diwali bonus, being a non-productivity linked bonus (ad hoc bonus), is bestowed upon employees irrespective of their individual performance.
It’s indeed a positive development that the eligible personnel of Central Para Military Forces and Armed Forces will also be entitled to this bonus. These individuals play a crucial role in safeguarding the nation’s security, and their dedication and hard work warrant due recognition.
The Diwali bonus will also encompass employees of the Union Territory Administration who adhere to the compensation structure aligned with the Central Government and aren’t encompassed by any other bonus or ex-gratia arrangement. This expansion ensures that an even larger number of employees will experience the bonus’s benefits.
This announcement is warmly received by employees within the Union Territory Administration, as it will assist them in fulfilling their financial requirements during the festive period. It also represents an acknowledgement of their unwavering commitment and diligent efforts.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
Download The Mint News App to get Daily Market Updates.
Updated: 20 Oct 2023, 12:22 PM IST