7th CPC – Bonus – Central Government to increase the eligibility limit of Productivity Linked Bonus
Central Government is considering increasing the eligibility limit of bonus from Rs. 10000/- to Rs. 21000/-
Normally, central government employees are entitled to receive Bonus in the month of September/October every year. In the 6th Central Pay Commission the Eligibility Limit for Bonus is Rs.10000/- and Calculation Ceiling is Rs.3500/-
There are two types of Bonus namely Production Linked Bonus (PLB) and Adhoc Bonus.
Productivity Linked Bonus (PLB):
Employees Eligible and Other Conditions:-
- Employees drawing emoluments up to specified amount in Railways, Department of Posts and Department of Telecommunications. All Group C, D and non-gazetted Group B in service as on 31st March of the year and Casual Labour working for 240 days for each of three years or more of BSNL and similar employees and the ED/GDS of Postal Department are eligible.
- Employees of Defence Production Units.
- The amount of bonus is announced separately for each department based on average emoluments drawn for the relevant year.
- Emoluments means – Basic Pay + Personnel Pay + Special Pay + Special Allowance + Deputation Allowance + Training Allowance + Dearness Allowance.
- Central Government Employees not covered by Productivity Linked Bonus.
- Central Police Personnel.
- Para Military Personnel.
- Armed Forces Personnel.
- Employees of Union Territories, Central Autonomous bodies partly/fully funded by the Central Government.
Bonus is calculated on the basis of basic pay of employees. The minimum percentage would be 8.33% and maximum percentage would be 20%. Anything given above 20% is called ex-gratia payment.
Limit of Bonus: As of now, employees drawing more than Rs.10,000/- as basic pay are in- eligible for bonus as per the Payment of Bonus Act(Amended). Now the central government is considering to increase the eligibility limit of bonus from Rs.10,000/- to 21,000/-.
According to information from reliable sources, has indicated that the calculation ceiling also to be increased from Rs.3500/- to Rs.7000/-
Previously, the central government had amended Section 12 of the Payment of Bonus (Amendment) Ordnance 2007 had been amended to raise the ceiling for calculation of bonus from Rs.2500/-p.m. to Rs.3500/- p.m. It also amended the eligibility limit for payment of bonus from the salary of Rs.3500/- to Rs.10,000/-p.m.
Calculations as of now…
|Sl. No.||Year of Amendment||Eligibility Limit||Calculation Ceiling|