Finance Ministry caps ad hoc bonuses for government employees at Rs 7,000

Government fixes ad hoc bonuses: On Tuesday, the Finance Ministry, in an office memorandum, set the upper limit for calculating non-productivity linked bonuses (ad hoc bonuses) for central government employees at Rs 7,000 for the fiscal year 2022-23. 

The Department of Expenditure under the Finance Ministry outlined that non-productivity linked bonuses equivalent to 30 days' emoluments for the accounting year 2022-23 will be granted to central government employees in Group 'C' and all non-gazetted employees in Group 'B' not covered by any productivity-linked bonus scheme. 

The stipulated ceiling for ad hoc bonus payments under these directives is a monthly emolument of Rs 7,000. Furthermore, eligible personnel of Central Para Military Forces and Armed Forces will also be entitled to receive these ad hoc bonuses.

What are non-productivity ad-hoc bonuses?

Non-productivity ad-hoc bonuses, also known as non-productivity linked bonuses or ad-hoc bonuses, are one-time financial incentives provided to employees by an organisation or government entity based on specific criteria without being directly tied to individual or organisational productivity. These bonuses are usually given to recognise and reward employees for their service, loyalty, or other factors.

Unlike productivity-linked bonuses, which are typically based on performance metrics, targets, or achievements, non-productivity ad-hoc bonuses are often a fixed amount or a predetermined percentage of the employee's salary. The criteria for eligibility and the amount of the bonus are generally set by the employer or the governing authority.

(With PTI inputs)