Central Government Employees to Receive Ad-Hoc Bonus
A recent directive from the Ministry of Finance, dated October 21st, 2020, has made it known that Central Government employees falling under Group C and Non-Gazetted categories are eligible for the Non-Productivity Bonus, also known as the Ad-hoc bonus.
No.7/24/2007/E III(A)
Government of India
Ministry of Finance
Department of Expenditure
(E III-A Branch)
North Block, New Delhi
21st October 2020
OFFICE MEMORANDUM
Subject: Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2019-20.
The undersigned is directed to convey the sanction of the President to the grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) equivalent to 30 days emoluments for the accounting year 2019-20 to the 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 ceiling for payment of ad-hoc Bonus under these orders shall be monthly emoluments of Rs. 7000/-, as revised w.e.f 01/04/2014 vide OM No.7/4/2014-E.III(A), dated 29th August, 2016. The payment of ad-hoc Bonus under these orders will also be admissible to the eligible employees of Central Para Military Forces and Armed Forces. The orders will be deemed to be extended to the employees of Union Territory Administration which follow the Central Government pattern of emoluments and are not covered by any other bonus or ex-gratia scheme.
2. The benefit will be admissible subject to the following terms and conditions:-
(i) Only those employees who were in service as on 31.3.2020 and have rendered at least six months of continuous service during the year 2019-20 will be eligible for payment under these orders. Pro-rata payment will be admissible to the eligible employees for period of continuous service during the year from six months to a full year, the eligibility period being taken in terms of number of months of service (rounded off to the nearest number of months);
(ii) The quantum of Non-PLB (ad-hoc bonus) will be worked out on the basis of average emoluments/calculation ceiling whichever is lower. To calculate Non-PLB (Ad-hoc bonus) for one day, the average emoluments in a year will be divided by 30.4 (average number of days in a month). This will, thereafter, be multiplied by the number of days of bonus granted. To illustrate, taking the calculation ceiling of monthly emoluments of Rs. 7000 (where actual average emoluments exceed .Rs. 7000/-, Non-PLB (Ad-hoc Bonus) for thirty days would work out to Rs. 7000×30/30.4=Rs.6907.89 (rounded off to Rs.6908/-).
(iii) The casual labour who have worked in offices following a 6 days week for at least 240 days for each year for 3 years or more (206 days in each year for 3 years or more in the case of offices observing 5 day week), will be eligible for this Non-PLB (Ad-hoc Bonus) Payment. The amount of Non-PLB (ad-hoc bonus) payable will be (Rs.1200×30/30.4 i.e.Rs.1184.21 (rounded off to Rs.1184/-). In cases where the actual emoluments fall below Rs.1200/- p.m., the amount will be calculated on actual monthly emoluments.
(iv) All payments under these orders will be rounded off to the nearest rupee.
(v) Various points regarding regulation of Ad-‘hoc I Non- PLB Bonus are given in the Annexure.
3. The expenditure on this account will be debitable to the respective Heads to which the pay and allowances of these employees are debited.
4. The expenditure to be incurred on account of Non-PLB (Ad-hoc Bonus) is to be met from within the sanctioned budget provision of concerned Ministries/Departments for the current year.
sd/-
(B.K. Manthan)
Deputy Secretary
Click to view the Finmin Bonus Order 2020
Bonus formula for CG employees | Bonus for the Postal employees |
Bonus for Ordnance employees | Bonus for GDS employees |
What is Ad-Hoc Bonus to Central Government Employees?
Ad-hoc Bonus is an additional payment given to Central Government employees as a reward for their hard work and dedication during a specific period.
Who is eligible for Ad-Hoc Bonus?
All Central Government employees who have completed at least six months of continuous service during the financial year are eligible for Ad-Hoc Bonus.
How is the Ad-Hoc Bonus amount calculated?
The Ad-Hoc Bonus amount is calculated on the basis of the employee’s basic pay and dearness allowance. The calculation formula may vary each year based on the government’s decision.
When is the Ad-Hoc Bonus usually given?
The Ad-Hoc Bonus is usually given before the Dussehra festival or Diwali festival, as per the decision of the government.
Is the Ad-Hoc Bonus taxable?
Yes, the Ad-Hoc Bonus is taxable under the Income Tax Act of India.
Can an employee refuse to accept the Ad-Hoc Bonus?
No, an employee cannot refuse to accept the Ad-Hoc Bonus. It is the employee’s right to receive the Ad-Hoc Bonus as per the government’s decision.
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