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Government Sanctions ad hoc bonus to Employees for FY21

by Economy India
October 19, 2021
Reading Time: 2 mins read
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The calculation ceiling for payment of this bonus would be monthly emoluments of Rs 7,000.

The government has sanctioned non-productivity linked or ad hoc bonus for central government employees for the fiscal year 2020-21.

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In an office memorandum, the Department of Expenditure under the Finance Ministry said the employees of central paramilitary forces and armed forces too would be eligible for the bonus.

Employees who were in service as of March 31, 2021, and have rendered at least six months of continuous service during 2020-21 fiscal year would be eligible for this ad hoc bonus.

Productivity-Linked Bonus Scheme

It has been reported that the non-productivity linked bonus (ad hoc bonus) would be paid to the central government employees in Group C and all non-gazetted employees in Group B, who are not covered by any productivity-linked bonus scheme.

The calculation ceiling for payment of this bonus would be monthly emoluments of Rs 7,000.

“The quantum of ad hoc bonus will be worked out on the basis of average emoluments/calculation ceiling whichever is lower,” the Department of Expenditure said.

Monthly Emoluments

Giving an illustration, the memorandum said given the calculation ceiling of monthly emoluments of Rs 7,000 (where actual average emoluments exceed Rs 7,000), the non-productivity linked bonus or ad-hoc bonus for 30 days would work out to be Rs 6,908, the report said.

It also clarified that in case of employees who resigned, retired from service or expired before March 31, 2021.

The ad hoc bonus would be paid only to those who superannuated or retired on medical grounds or died before March 31, 2021, but after completing at least six months regular service during the year. (Zee News)

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