Central Government Employees Push for Bonus Ceiling Increase to Rs 21,000 Ahead of Dussehra 2026

In anticipation of the Dussehra festival in October 2026, central government employees are advocating for an increase in the bonus payable ceiling from Rs 7,000 to Rs 21,000. This push for enhancement aligns with the Ministry of Labour and Employment's earlier adjustments to bonus calculations, aiming to provide fair compensation in line with the newly established minimum wages.

After the Ministry of Labour and Employment notified that the bonus for employees should be calculated at Rs 7,000 or the minimum wage fixed by the central government, whichever is higher, the National Council (Staff Side) of the Joint Consultative Machinery has requested the Cabinet Secretary to issue orders before Dussehra on October 20, 2026. They want central government employees to receive their annual bonus based on a ceiling of Rs 21,000, instead of Rs 7,000.

In a letter dated August 27, 2026, Shiva Gopal Mishra, secretary, NC-JCM, wrote to the cabinet secretary, Government of India & chairman, National Council – JCM, that since the minimum wage announced by the central government is Rs 21,000, the bonus amount should not be less than Rs 21,000.

“In view of the above, since the Dussehra festival is nearing and the government will be issuing orders for payment of PLB/bonus/ad hoc bonus, it is requested that as informed by the official side in the 49th Meeting of National Council (JCM), the bonus payable ceiling for the central government employees may be enhanced from Rs 7,000 to Rs 21,000. Necessary orders may please be issued in this regard,” reads the NC-JCM letter.

Central government employees up to Level 8 get the annual bonus on Diwali every year.

What Ministry of Labour & Employment’s notification regarding revised bonus payable ceiling says

The NC-JCM, in its letter, is referring to a notification by the Ministry of Labour & Employment where it has said that the bonus will be calculated at the higher amount of Rs 7,000 or the minimum wage fixed by the central government.

In its notification dated August 25, the ministry said: “In exercise of the powers conferred by Sub-Section (2) of Section 26 of the Code on Wages 2019 (29 of 2019), the central government hereby determines that for the purpose of calculation of the bonus payable under sub-Section (1) and (3) of Section 26 of the said Code, where the wage of an employee being eligible for bonus under Sub-section (1) of Section 26, exceed Rs 7,000 per month, the bonus payable to such employee shall be calculated, as if his/her wage was Rs 7,000 or the minimum wage fixed by the central government, whichever is higher.”

In September 2024, the Ministry of Labour had declared the minimum wages for unskilled, semi-skilled, skilled and highly skilled workers working in geographical areas A, B and C.

For geographical areas, the central government wages were- Rs 783/day ( Rs 20,358/month) for unskilled workers, Rs 868/day (Rs 22,568/month) for semi-skilled workers, Rs 954/day (Rs 24,804/month) for skilled workers and Rs1,035/day (Rs 26,910/ per month) for highly skilled workers.

States such as Uttar Pradesh and Haryana have also declared Rs 21,000 each as the minimum wage in their respective states.

Based on these wage structures, the NC-JCM is also asking the Cabinet to issue an order stating that the bonus payable should be calculated at the Rs 21,000 wage ceiling.

How increased bonus payable limit can help central government employees

The central government provides a one-month non-productivity-linked bonus to its employees at Diwali. This bonus is calculated at a wage of Rs 7,000, and 30.4 average days in a month are taken into account.

The calculation of this bonus is as follows:

Payable bonus (one-time bonus on Diwali)= Rs 7,000/30.4X30= Rs 6,908

Manjeet Singh Patel, president, All India New Pension Scheme Employees’ Federation, told ET Wealth Online that a Rs 6,908 bonus on Diwali is too little by any standard at a time when the central government itself recognises Rs 783, Rs 868, Rs 954, and Rs 1,035 as per day wages for unskilled, semi-skilled, skilled and highly skilled employees, respectively.

What happens if payable bonus is calculated at Rs 21,000?

In that case, the approximate payable bonus can be = Rs 21,000/30.4X30= Rs 20,724

It will be approximately three times of the current bonus.

What AINSPEF has recommended in the 8th Pay Commission memorandum regarding payable bonus

The AINSPEF, in its memorandum submitted to the 8th Pay Commission, has taken the average of Rs 783, Rs 868, Rs 954, and Rs 1,035 to calculate the one-day wage, which is Rs 910 a day or Rs 27,300 a month.

Payable bonus as per AINSPEF= Rs 27,300/30.4 x 30= Rs 26,941