Confusion on ceiling of bonus for Central Government employees continues

Monday, October 05, 2015

Confusion on ceiling of bonus for Central Government employees continues

“Doubts and debates over the ceiling of Productivity Linked Bonus to Central Government employees this year continue to plague the minds.”

The word ‘Bonus’ continues to powerfully attract the employee communities.

Given once every year, bonus or honorarium could sometimes be even bigger than the monthly salaries.

But Central Government employees are given only small amounts as bonuses each year. With the highest prescribed ceiling limit fixed at Rs.3500, the bonus is calculated based on the number of days announced.

Last year, Railway employees were given bonuses of 78 days, employees of the postal department received 60 days’ bonus. Civilian employees of the defence were given a bonus of 40 days.

Employees of the public and private sectors wrongly assume that 60 days bonus implies tow months’ salary.

In simple terms, a 30 days bonus indicates a sum of Rs.3500 approximately. 60 days bonus implies that the worker will be given Rs.7000. in case of 75 days’ bonus, the worker makes Rs.8750. The amount is equal to one-fifth the salary of the employee.

In 2007, the calculation ceiling of bonus was increased from Rs.2500 to Rs.3500pm , and the eligibility limit for bonus was raised from Rs.3500 to Rs.10,000 pm. For a number of years, all federation of Central Government employees have been demanding that the calculation ceiling limit be raised from Rs.3500. You can see its impact on all the ‘Charter of Demands‘ presented by the federations to the government.

Recently, the Government requested the trade unions to withdraw their September 2 strike notice. During the negotiations that were held between the ministers and the trade union representatives, it was reported that the Government had accepted to raise the bonus ceiling limit from Rs.3500 to Rs.7000. Sources also said that the eligibility of bonus was raised from Rs.10,000 to Rs.20,000. But, no announcements in this regard were made by the Government.

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