Central government employees bear the Christmas burden, but Diwali 2024 brings great news regarding a huge bonus. Likewise, on this Diwali, due to this bonus under the 7th Pay Commission, joy and happiness can be seen in the over one crore employees and pensioners getting it for the first time and they will have extra funds in their pockets.
What is the meaning of bonus under the 7th Pay Commission?
The 7th pay Commission bonus is the cash incentive offered by the government to its employees especially during festival season like Diwali. This year, for central government employees Central government employees will get an ad-hoc bonus of one month salary which would be a good amount added to the pay of October. This initiative seeks to help government workers to cater for festivity expenses.
Who Will Benefit from the Bonus?
The ad-hoc bonus is mostly for the Group C employees and the Group B non-gazetted employees only. However, it does not include employees who are receiving productivity linked bonus or incentive.
This bonus will also favour employees in union territories, paramilitary forces and armed forces, subject to the central government pay. For the employee to get the bonus, he or she should have have served the company for six months in the current financial year and continuously worked in the firm up to March 31, 2024.
How is the Bonus Calculated?
The bonus is computed ad – hoc for this standard from a fixed formula. For example, carry forward from MSL will be allowed only for those employees whoseMaximum Allowable Salary is ₹7,000 or less – this is the amount they will be able to recognize in their balance sheet in terms of bonuses.
Super is calculated using the formula with the employee’s monthly wage: monthly wage divided by 30.4 multiplied by 30. This makes for equitable distribution of the bonus, since it pro rata’s the amount to the effected employees.
For example, suppose an employee earns ₹20,000 per month; they will receive a bonus of almost ₹19,737. Also, the daily wage worker if has been with company for three years and has worked 240 days a year, will get ₹1,200 a month as extra pay.