Rules governing the festival bonus paid to central government employees could soon change, and the shift may directly boost the amount that lands in millions of employees' pockets. Employee organisations have made it clear that if the government is changing how bonuses are calculated, central government staff should get the same benefit. Some organisations have gone as far as demanding that the minimum bonus be fixed at Rs 21,000. The final call rests with the 8th Pay Commission and the government, but the scale of the demands suggests bonus payouts could see a sharp jump in the coming period.
Why the demand for a bonus overhaul came up
The whole issue traces back to a notification from the Ministry of Labour and Employment. On 25 August, the ministry issued an order under the Code on Wages 2019 stating that for eligible employees earning more than Rs 7,000, bonus would now be calculated on whichever is higher between Rs 7,000 or the minimum wage fixed by the government. As soon as the notification came out, NC-JCM, the country's largest government employees' organisation, formally known as the National Council for Joint Consultative Machinery, raised its voice. The organisation argues that since this relief is being extended, the maximum bonus ceiling for central government employees should also be revised.
Demand for a minimum bonus of Rs 27,694
Dr Manjeet Singh Patel, president of the All India NPS Employees Federation, wrote on social media that if the government is going to calculate bonus based on a minimum salary above Rs 7,000, central government employees should get the same benefit. He said the minimum salary for central employees is currently treated as Rs 18,000, and applying the bonus formula of 18,000×30÷30.4 on that base works out to Rs 17,763. Dr Patel also said a demand has been placed before the commission to fix the minimum bonus at Rs 27,694 under the 8th Pay Commission, roughly Rs 10,000 more than the current figure.
Call for a separate formula for every sector
Dr Manjeet Singh Patel has also asked the government to base bonus calculations on the minimum salary fixed separately for employees of each sector, so that no category of worker loses out. However, he acknowledged that even if the government adopts a new method for calculating bonus, its real effect will not be felt immediately but only over the next few years, since such changes take time to be implemented and to actually reach employees.
NC-JCM's demand: raise the cap from Rs 7,000 to Rs 21,000
NC-JCM, the National Council for Joint Consultative Machinery, says the maximum bonus limit for central government employees should be raised straight from the current Rs 7,000 to Rs 21,000. Notably, most government employees currently receive a bonus capped at Rs 7,000 around Diwali. If NC-JCM's demand is accepted, the amount employees actually receive could triple.
Demand to release the bonus before Dussehra
NC-JCM has raised another significant demand in a letter written to the government on 27 August. The organisation wants the revised bonus released before Dussehra this time, rather than waiting for Diwali. The letter clearly states that the bonus amount this time should be Rs 21,000. Dussehra falls on 20 October, 2026. Every year during the festival season, the government has paid bonuses to its employees ahead of Diwali, but this time the organisations want both an earlier payout and a bigger amount. Along with the other demands already being pushed for the 8th Pay Commission, employee organisations have now added these bonus-related changes to their list as well.
