Economy

Few Central Government Employees to Receive Ad-hoc Bonus

The Central Government approves the Non-Productivity Linked Bonus (Ad-hoc Bonus) equal to 30 days emoluments concerning 2020-21 to a few Central Government employees. A few of the qualifying Central Government employees for this bonus belong to Group ‘C’. Every non-gazetted employee in Group ‘B’ who does not come under any Productivity Linked Bonus Scheme will also qualify for the ad-hoc bonus.

The payment cap concerning the ad-hoc bonus will be Rs 7000 (monthly emoluments) as updated w.e.f 01-04-2014. As per these orders, the ad-hoc bonus payment will also be payable to the qualifying employees of Central Para Armed Forces and Military Forces.

The orders will be extended to the employees of the Union Territory Administration, which comply with the Central Government pattern of emoluments and do not come under any other ex-gratia or bonus scheme.

As per the Department of Expenditure (DoE), the benefit will be permissible based on a few conditions:

  1. Applicable to employees:
  • Those who were in service as of 31 March 2021.
  • Those who have served a minimum of six months of uninterrupted service during 2020-21.

Pro-rata payment will be allowed to qualifying employees for a period of uninterrupted service during the year between six months and a whole year. The qualifying period will be considered based on the number of months of service.

  1. The allotment of ad-hoc bonus will be computed based on the calculation ceiling and average emoluments, whichever is lower.
  1. The benefit will apply to casual labour who have worked in offices for six days a week for a minimum of 240 days each year for three years or more (206 days in every year for three years and above in case of offices who work five days in a week). If the actual emoluments are worth less than Rs.1200 per month, the amount will be computed based on actual monthly emoluments.

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For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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