Govt bans ad-hoc bonus to employees for FY21

Employees who were in service till March 31, 2021, and have rendered at least six months of continuous service during the financial year 2020-21, will be eligible for this ad-hoc bonus.

The government has approved non-productivity linked or ad-hoc bonuses for central government employees for the financial year 2020-21.

In an office memorandum, the Department of Expenditure under the Ministry of Finance said that employees of central paramilitary forces and armed forces will also be eligible for the bonus.

Employees who were in service till March 31, 2021, and have rendered at least six months of continuous service during the financial year 2020-21, will be eligible for this ad-hoc bonus.

Non-Productivity Linked Bonus (Ad-hoc Bonus) will be paid to Central Government employees in Group C and all non-gazetted employees in Group B who are not covered by any Productivity-Linked Bonus Scheme.

The calculation limit for payment of this bonus will be the monthly emoluments of ₹7,000.

“The quantum of ad-hoc bonus will be calculated on the basis of average emoluments/maximum of calculation, whichever is lower,” the expenditure department said.

To calculate the ad-hoc bonus for a day, the average emoluments in a year will be divided by 30.4 (average number of days in the month).

Thereafter, it will be multiplied by the number of days of the bonus awarded.

Giving an example, the memorandum states that considering the limit of computing monthly emoluments at ₹7,000 (where actual average emoluments exceed ₹7,000), non-productivity linked bonus or ad-hoc bonus for 30 days would be ₹6,908 .

It also clarified that in case of employees who resign, retire from service or expire before March 31, 2021, ad-hoc bonus will be paid only to those who retired or retired on medical grounds on or before March 31, 2021. Died before 2021 but after completing at least six months of regular service during the year.

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