Govt approves non-productivity linked bonus to Group B and C employees, know details


New Delhi: For the 2021-2022 financial year, the Government has authorized the granting of bonuses not linked to productivity (ad hoc bonuses) to all non-catalogued staff of group B and to employees of the central administration of group C. Employees who are not protected by a productivity. Linked bonus scheme get ad-hoc bonus.

In an Office Memorandum (OM) dated October 6, 2022, the Department of Expenditure (DOE) under the Ministry of Finance said that the President has sanctioned the award of “Non-Productivity Bonds ( Bos ad-hoc) equivalent to 30 days of emoluments for the accounting year 2021-22 to employees of the Central Administration of Group “C” and all non-catalogued employees of Group “B”, who are not covered by any bonus regime linked to productivity”.

The DOE further stated that a monthly salary of Rs. 7000 would be the calculation ceiling for ad hoc bonus payments.

Eligible employees of the Central Paramilitary Forces and the Armed Forces will also be eligible for ad hoc bonus. Additionally, it will be extended to the employees of the Union Territory Administration whose wages follow the Central Administration guideline and who are not covered by any other bonus or gratuity scheme.

The OM specifies that the following terms and circumstances must be met for the ad hoc bonus provision to be admissible:

To be eligible for payment under these orders, an employee must have been employed on 31.3.2022 and have rendered at least six months of continuous service during the calendar year 2021-2022.

Qualified personnel will be entitled to prorated payment for periods of continuous work during the year ranging from six months to a full year.

The number of months of service is used to determine the eligibility period (rounded to the nearest number of months)

The amount of Non-PLB (ad hoc allowance) will be calculated using the lower of the average emoluments or the calculation limit.

The average annual salary will be divided by 30.4 to determine a day’s ad-hoc (average of days in a month). The amount will be multiplied by the total number of bonus days granted. The DOE provided an illustration to illustrate this:

No PLB (Ad Hoc Allowance) for thirty days would be calculated using the calculation ceiling of monthly emoluments of Rs.7000 (where actual average emoluments exceed Rs.7000). (rounded to Rs 6908).

According to the DOE, casual workers who have worked in offices with a 6-day work week for at least 240 days per year for three years or more—or 206 days per year for three years or more—will be eligible for this No PLB (Ad – hoc Bonus) Payment. Non-PLB (ad hoc bonus) payment amount is (Rs.120030/30.4 or Rs.1184.21). (rounded to Rs.1184).

The actual monthly emoluments will be used to determine the amount in circumstances where the actual emoluments are less than Rs. 1200 per month.

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