3 days ago
8th Pay Commission Could Raise Central Employees’ Bonus Calculations
The government has explained how some employee bonuses may be calculated.
The current figure used is ₹7,000, unless a higher minimum wage is set.
Employee groups want the bonus ceiling raised to ₹21,000.
Manjeet Singh Patel wants each sector’s minimum basic salary to be used instead.
He gave ₹18,000 as an example of a possible salary base.
With that calculation, he estimated a bonus of ₹17,763.
He also said an appeal was made for a bonus of ₹27,694.
The government must decide whether any of these suggestions will be accepted.
A Labour Ministry notification says bonuses may be calculated on ₹7,000 or the higher central minimum wage.
The NC-JCM Staff Side has sought an increase in the bonus ceiling from ₹7,000 to ₹21,000.
Manjeet Singh Patel said sector-wise minimum basic salaries should guide bonus calculations for central employees.
Using an ₹18,000 minimum basic salary, Patel estimated a bonus of ₹17,763 and sought ₹27,694.
Any revised bonus will depend on the government’s decision, applicable rules, and the timing of Dussehra payouts.
- Who
- The Ministry of Labour and Employment, central government employee groups, the NC-JCM Staff Side, and Manjeet Singh Patel.
- What
- Proposals have been made to increase or change the salary ceiling used to calculate bonuses for eligible central government employees.
- Where
- The proposals concern Central Government employees in India.
- When
- The notification was discussed on August 25, and the NC-JCM letter was dated August 27, 2026; Dussehra falls on October 20, 2026.
- Why
- Employee representatives want higher bonus payments and revised calculations before the usual festival-season bonus orders.
Employee Representatives’ Proposals
Current Rules and Government Decision
Bonus ceiling
Employee Representatives’ Proposals
The NC-JCM Staff Side wants the ceiling increased from ₹7,000 to ₹21,000.
Current Rules and Government Decision
The notified framework refers to ₹7,000 or a higher central minimum wage, with any change dependent on the government and applicable rules.
Salary basis
Employee Representatives’ Proposals
Manjeet Singh Patel supports using the minimum basic salary prescribed for each sector, citing ₹18,000 as an example.
Current Rules and Government Decision
The government has not confirmed that sector-wise minimum basic salaries will replace the existing calculation approach.
Timing of payment
Employee Representatives’ Proposals
The NC-JCM has asked for revised bonus orders before Dussehra.
Current Rules and Government Decision
The timing and amount of any revised Productivity Linked Bonus, Non-PLB, or Ad-hoc Bonus remain subject to official orders.
Key facts
- Current calculation base
- ₹7,000 or the minimum wage fixed by the central government, whichever is higher.
- NC-JCM demand
- Raise the bonus payable ceiling from ₹7,000 to ₹21,000.
- Example minimum basic salary
- ₹18,000.
- Patel’s estimated bonus
- ₹17,763, based on ₹18,000 × 30 ÷ 30.4.
- Separate bonus appeal
- ₹27,694.
- NC-JCM letter date
- August 27, 2026.
- Dussehra date
- October 20, 2026.
Quotes
Manjeet Singh Patel
President of the All India NPS Employees Federation
“if the government considers a minimum wage higher than ₹7,000 for bonus calculation, the same principle should be applied to Central Government employees.”
livemint.com
Sources
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