A fresh demand has emerged for increasing the bonus calculation ceiling for Central Government employees from ₹7,000 to ₹21,000 ahead of the Dussehra festival in October 2026. The proposal has been raised by the National Council–Joint Consultative Machinery (NC-JCM), Staff Side.
What is the Demand?
The NC-JCM has requested the Government to revise the existing bonus calculation limit and make ₹21,000 the applicable wage ceiling, instead of the current ₹7,000.
The request was made in a communication dated 27 August 2026 to the Cabinet Secretary. The employee body has sought issuance of the necessary orders before the upcoming Dussehra period, when annual bonus payments are generally processed.
Why ₹21,000?
The demand is linked to the recent revision in the bonus calculation framework under the Code on Wages, 2019. The Ministry of Labour and Employment has provided that, where an eligible employee's wage exceeds ₹7,000 per month, bonus is to be calculated using ₹7,000 or the minimum wage fixed by the Central Government, whichever is higher.
Since the Central Government minimum wage referred to by the NC-JCM is ₹21,000, the employee body has argued that the bonus ceiling should also be aligned with this amount.
Who Could Benefit?
The proposal is particularly relevant to Central Government employees covered by the applicable annual bonus arrangements, including employees up to Pay Level 8 who receive the non-productivity-linked bonus.
What Could Change?
If the Government accepts the demand:
- The wage ceiling used for bonus calculation could rise from ₹7,000 to ₹21,000.
- Employees whose bonus is presently calculated using the lower ceiling could potentially receive a higher bonus.
- The revised ceiling would bring bonus calculations closer to the minimum wage level cited by the employee body.
- The actual benefit would depend on the Government's final decision and the applicable bonus calculation formula.
Important Note
The increase from ₹7,000 to ₹21,000 is currently a demand from the NC-JCM and should not be treated as an approved revision. Any change in the bonus ceiling will take effect only after the competent authority issues the necessary Government orders.
Revised Bonus Calculation – Key Figures
Under the revised bonus-payable ceiling referred to by the NC-JCM, where the calculation ceiling is increased from ₹7,000 to ₹21,000, the estimated bonus would change substantially. The Ministry of Labour & Employment notification provides that, where an eligible employee’s wage exceeds ₹7,000 per month, bonus is calculated using ₹7,000 or the applicable minimum wage fixed by the Central Government, whichever is higher.
| Calculation Basis | Approx. Bonus |
|---|---|
| Existing ceiling: ₹7,000 | ₹6,908 |
| Proposed ceiling: ₹21,000 | ₹20,724 |
| AINSPEF suggested basis: ₹27,300 | ₹26,941 |
Formula
Bonus = Wage considered for calculation ÷ 30.4 × 30
At ₹7,000:
₹7,000 ÷ 30.4 × 30 = ₹6,908 approximately
At ₹21,000:
₹21,000 ÷ 30.4 × 30 = ₹20,724 approximately
Thus, if the ₹21,000 ceiling is approved, the indicative bonus would be around ₹20,724, compared with approximately ₹6,908 under the ₹7,000 ceiling.
Important: ₹21,000 is currently an NC-JCM demand, not an approved revised ceiling. The actual amount will depend on the Government's final order
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