The Ministry of Labour and Employment has officially revised the Bonus Payable Ceiling for Central Government employees from ₹7,000 to ₹21,000 per month through Gazette Notification No. S.O.4710(E) dated August 25, 2026. As per the official notification, this revision shall be deemed to have come into force on November 21, 2025, when the four new labour codes took effect. The notification specifically states that 'At present the Minimum Wage announced by the Central Government is ₹21,000/-, accordingly, the Bonus Payable Amount cannot be less than ₹21,000/-'. This formal implementation addresses the long-standing demand by central government employees for a revised bonus ceiling that aligns with the updated minimum wage structure.
The National Council (Staff Side) of the Joint Consultative Machinery (JCM) for central government employees has formally submitted a representation requesting an increase in the Bonus Payable Ceiling from ₹7,000 to ₹21,000 per month. According to reports from Mint, this push comes just ahead of the Dussehra festival, the typical period when the central government issues official orders regarding the distribution of Productivity Linked Bonus (PLB), Non-PLB, and Ad-hoc Bonus payouts. The Staff Side NC-JCM has now specifically urged the Cabinet Secretary to approve the revised ₹21,000 bonus for Central Government employees during the upcoming Dussehra festival, as stated in a letter dated August 27, 2026 by JCM Staff Side Secretary Shiva Gopal Mishra. The 49th National Council (JCM) meeting held on May 11, 2026 under the Chairmanship of the Cabinet Secretary had initially discussed this enhancement, with the Official side informing that the demand could be considered only when the Central Government revised the Payment ceiling limit in the Code on Wages, 2019.
The bonus payable ceiling directly determines the total formulaic payout for eligible staff, and aligning the cap with the updated ₹21,000 minimum wage would represent a substantial enhancement in festive disbursements. The current non-productivity-linked bonus of only ₹6,908 is based on the lowest pay scale found in the private sector of ₹7,000, while the government recognizes daily wage rates of ₹783, ₹868, ₹954, and ₹1,035 for unskilled to highly skilled categories respectively, suggesting a potential bonus of ₹27,694 based on average rates. According to Manjeet Singh Patel, President of the All India NPS Employees Federation, the enhanced ceiling would significantly improve employee compensation during the upcoming Dussehra festival period, when the government typically issues orders for PLB, Bonus, and Ad-hoc Bonus payments. The formal Gazette notification provides the necessary legal framework for implementing the enhanced bonus ceiling across all central government departments.
The JCM's representation acts as a formal proposal urge, and standard processing orders from the Central Government remain required before the revised calculations take effect for pending Dussehra bonus payments. According to Mint, employees now await government clarity on the final calculation ceiling for the current payment cycle. The timing of this request, just before the traditional Dussehra bonus distribution period, underscores the urgency of the demand for central government employees. The Staff Side NC-JCM has specifically demanded that the Centre issue a necessary order in this regard, emphasizing the immediate need for clarity as the government prepares to issue orders for PLB, Bonus, and Ad-hoc Bonus payments during the upcoming festival period. The formal Gazette notification provides the necessary legal framework for implementing the enhanced bonus ceiling across all central government departments.
