The festival of Diwali is around the corner and as a gift for its employee the Central Government is going to declare excellent bonus. On 10th of October 2024, Ministry of finance issued a circular regarding(empowers) an ad-hoc bonus amounting to one month’s salary for FY 2023-24 for central government employees. This comes as good news to so many people, especially during this festive season when so many are hoping to receive some extra cash.
Bonus Details
The announced bonus will be for those employees who are outside the purview of productivity-based bonus programs. In particular, it will apply to the non-gazetted employees of Group B and Group C.
As per the Ministry’s order, bonus will be calculated on a maximum salary ceiling of ₹ 7,000/- per month. This means that if an employee earns more than ₹7,000, the bonus computation will still form its basis at ₹7,000 only.
Eligibility Criteria
For this Diwali bonus, employees have to meet specific eligibility requirements that will allow them for the bonus. The bonus is available for the employees within the pay structure of central government, Union Territories, paramilitary forces and the armed forces personnel.
More importantly, the employees must have been in service till at least 31 st March, 2024 and must have completed at least 6 months of service during the current year continuously. For those workers who have been serving their employers for less than a year, they will be paid a proportionate amount of the bonus depending on the number of months that the employee has served.
Calculation of Bonus Amount
The procedure for calculating bonuses is very simple. An employee’s average salary will be divided by 30.4, then multiple the result by 30 in order to calculate the bonus value.
For example, when an employee earns ₹20,000/- p.m. then he would be given a bonus of ₹19,737/- only. Furthermore, daily wage workers in the plant who has had a three year work experience with a record of 240 working days a year will earn a bonus of ₹1200 per month.
