National Council Seeks Hike in Bonus Ceiling for Central Government Employees from ₹7,000 to ₹21,000
The National Council (Staff Side) of the Joint Consultative Machinery (JCM) for Central Government employees has urged the Government to increase the Bonus Payable Ceiling from ₹7,000 to ₹21,000, citing the recent revision of the minimum wage announced by the Central Government.
The demand has been raised ahead of the Dussehra festival, when the Government is expected to issue orders relating to the payment of Productivity Linked Bonus (PLB), Bonus and Ad-hoc Bonus to eligible Central Government employees.
In a letter addressed to the Cabinet Secretary and Chairman of the National Council-JCM, Staff Side Secretary Shiva Gopal Mishra said the issue of enhancement of the bonus ceiling had already been raised during the 49th meeting of the National Council (JCM), held on May 11, 2026.
According to the letter, the Staff Side had sought an increase in the bonus calculation ceiling from the existing ₹7,000. During the meeting, the Official Side had reportedly informed the Staff Side that the demand could be considered only after the Central Government revised the payment ceiling prescribed under the Payment of Bonus Act, 1965, now incorporated into the Code on Wages, 2019.
The Council has now pointed to a Gazette notification issued by the Ministry of Labour and Employment on August 25, 2026, bearing notification number S.O.4710(E).
As per the notification cited by the Council, for the purpose of calculating bonus under the relevant provisions of the Code on Wages, where the wage of an employee eligible for bonus exceeds ₹7,000 per month, the bonus is to be calculated by treating the wage as ₹7,000 per month or the minimum wage fixed by the Central Government, whichever is higher.
The notification has also been given retrospective effect from November 21, 2025, according to the document submitted by the Staff Side.
Minimum wage revision cited as basis for demand
The National Council has argued that the situation has changed following the Central Government’s revision of the minimum wage to ₹21,000 per month.
“At present the Minimum Wage announced by the Central Government is Rs.21,000/-,” the Council stated, adding that consequently, the bonus payable amount should not be less than ₹21,000.
The Staff Side has therefore requested the Government to formally enhance the Bonus Payable Ceiling for Central Government employees from ₹7,000 to ₹21,000.
The demand assumes significance because the bonus calculation ceiling directly affects the amount used for determining bonus payments for eligible employees. The Council’s latest representation seeks alignment of the ceiling with the revised minimum wage.
Demand comes ahead of Dussehra bonus payments
The timing of the representation is particularly significant as the Dussehra festival is approaching. The Council has requested that the Government issue the necessary orders at the earliest so that payments relating to PLB, Bonus and Ad-hoc Bonus can be processed for eligible Central Government employees.
The Staff Side has urged the Government to take a decision on the matter in view of the revision notified by the Labour and Employment Ministry.
The representation does not itself constitute an order enhancing the bonus ceiling. Rather, it is a formal request from the National Council (Staff Side) seeking government action based on the revised minimum wage and the August 25 Gazette notification.
If accepted, the proposed increase from ₹7,000 to ₹21,000 would represent a significant change in the ceiling used for bonus-related calculations for eligible Central Government employees.
The Council has accordingly sought the issuance of necessary orders before the upcoming festive season, with employees awaiting clarity on the bonus amount and the applicable calculation ceiling for the current payment cycle.
