Bonus Hike: Right before the festive season kicks off, there’s some good news for central government workers. The staff side of the National Council of Joint Consultative Machinery (NC-JCM) is strongly pushing the central government to triple the bonus calculation ceiling from Rs 7,000 to Rs 21,000. If this proposal gets the government’s nod before Dussehra, non-gazetted employees in departments like Railways, Postal Services, and Defense are set to receive a significant boost in their bonuses.
As the Dussehra and Diwali festivities draw near each year, the Central Government typically issues directives for the payout of Productivity Linked Bonus (PLB) and Ad-hoc (Non-PLB) bonuses to eligible employees. On August 27, 2026, Shiv Gopal Mishra, Secretary of NC-JCM (Staff Side), penned a letter to the Cabinet Secretary, urging that this year’s bonus be calculated with the revised limit of Rs 21,000 per month instead of Rs 7,000.
Reason for the Rs 21,000 Ceiling Request
NC-JCM meeting on May 11, 2026: During the 49th National Council meeting, the employees’ side raised the issue of upping the bonus ceiling. The official side responded that this demand could be considered only if the government adjusts the minimum wage cap under the Code on Wages, 2019, or the Payment of Bonus Act, 1965.
Gazette Notification dated August 25, 2026: The Ministry of Labor and Employment released a notification clarifying that if an employee’s eligibility exceeds Rs 7,000 monthly, the bonus will be computed based on Rs 7,000 or the central government’s minimum wage (whichever is higher). This regulation has been in effect since November 21, 2025.
Revised Minimum Wage: The current minimum wage set by the central government ranges from Rs 20,358 to Rs 26,910 monthly. Various states, such as Uttar Pradesh and Haryana, have also established a minimum wage of Rs 21,000. Based on this, NC-JCM argues that the new bonus ceiling should be fixed at Rs 21,000.
Impact on Employees’ Income:
This adjustment will directly benefit over 30 lakh non-gazetted Central Government employees from Level-1 to Level-8.
Departments to Benefit:
Indian Railways: More than 11 lakh railway workers are set to receive 78 days of PLB.
Department of Posts and Defence Works: Postal employees and Ordnance/Defence civilian staff.
Autonomous Bodies and Central Secretariat: Non-gazetted employees of Group ‘C’ and Group ‘B’ in other Central Ministries.
Employee unions highlight that the bonus ceiling has remained unchanged since 2014-15, despite multiple adjustments for inflation and minimum wage. The focus now shifts to the final directive from the Cabinet Secretary and the Finance Ministry, expected to be issued by the end of September or early October, just ahead of Dussehra.