The central government has recently notified that for eligible employees whose wages exceed ₹7,000 per month, bonus is going to be calculated on ₹7,000 or the minimum wage that is going to be fixed by the central government, whichever happens to be higher. Ministry of Labour and Employment discussed these aspects in the notification released on August 25, under the Code on Wages, 2019.
Subsequent to the notification, a prominent employee association in the has suggested that the government should revise the bonus payable ceiling to central government employees. This will have a meaningful impact on the eventual bonus payments if the suggestions are taken into account.
On the other hand, Manjeet Singh Patel, President of the All India NPS Employees Federation, in a recent tweet on X, said that, “if the government considers a minimum wage higher than ₹7,000 for bonus calculation, the same principle should be applied to .”
Taking the minimum basic salary of ₹18,000 as an example, Patel said the bonus could work out to ₹17,763, based on the calculation of ₹18,000 × 30 ÷ 30.4. He also said an appeal had been made before the to fix the bonus at ₹27,694.
Patel has primarily urged the government to use the minimum basic salary prescribed for each sector as the basis for calculating bonus payments. He said that even if the government adopts its own method for determining the bonus, it could create the possibility of better outcomes over the coming years.
His complete tweet can be referred to from the following:
What did the NC-JCM say on the bonus ceiling?
Separately, the Staff Side of the National Council-Joint Consultative Machinery (NC-JCM) has urged the Centre to enhance the bonus payable ceiling for Central Government employees from ₹7,000 to ₹21,000.
In a recent letter dated August 27, 2026, the NC-JCM requested the government to issue the revised bonus ahead of the upcoming Dussehra festival. The demand for ₹21,000 is separate from Patel’s suggestion to use sector-wise minimum basic salaries for bonus calculation.
The push from various employee unions and associated stakeholders comes just ahead of the , the typical period when the central government issues official orders regarding the distribution of Productivity Linked Bonus (PLB), Non-PLB, and Ad-hoc Bonus payouts. This time, the festival of Dussehra falls on 20 October 2026.
Furthermore, it is vital to keep in mind that any eventual changes to the calculation of the bonus for eligible employees will depend on the government’s decision and the applicable rules.
It is now to be seen how the government proceeds with and calculates the bonus amounts for eligible employees to constructively boost their morale, thus helping create a positive working environment this festive season.