8th Pay Commission: A significant update regarding bonus calculations has emerged for central government employees who are anticipating a salary hike under the 8th Pay Commission. Employee unions have demanded that the government base the bonus calculation for central employees on the sector-specific minimum basic salary. If the government accepts this proposal, employees would receive a significantly higher bonus amount in their accounts during the upcoming festive season.
It is worth noting that on August 25, the Ministry of Labour and Employment issued a notification exercising powers under sub-sections (1) and (3) of Section 26 of the Code on Wages, 2019. This notification clarifies that if an employee eligible for a bonus earns more than ₹7,000 per month, the bonus calculation will be based on either ₹7,000 per month or the minimum wage fixed by the central government—whichever is higher.
Understanding the Bonus Calculation Math
Currently, the bonus for central employees is calculated based on the lowest pay scale threshold found in the private sector—specifically, the ₹7,000 limit. Employee federations now suggest that the minimum basic salary prescribed for each specific sector should serve as the basis for bonus payments. Manjeet Singh Patel, National President of the All India NPS Employees Federation, explained this system by noting that the Government of India has clarified that if the minimum wage is considered to be higher than ₹7,000, the bonus will be paid based on that higher wage figure. If the government were to pay bonuses to central employees based on a minimum wage of ₹18,000, the total bonus amount would come to ₹17,763 (Calculation: 18,000 × 30 ÷ 30.4).
According to the formula provided by Manjeet Singh Patel, the bonus calculation would vary depending on the employee's pay level. For instance, with a minimum basic pay of ₹18,000, the potential bonus under this formula would be ₹17,763. With a minimum basic pay of ₹35,400 under Pay Level 6, the potential bonus calculated using this formula would amount to ₹34,934.
In a post on the social media platform X, Patel stated that a request has already been made to fix the bonus at ₹27,694 under the Pay Commission framework. He noted that even if the government decides to determine the bonus using its own method, it could pave the way for better outcomes in the long run. Therefore, the government has been urged to use the minimum basic salary prescribed for each sector as the basis for bonus calculations.
**Demand for a revised bonus of up to ₹21,000 for Dussehra**
The National Council (Staff Side) JCM (NC-JCM) has also appealed to the Central Government to provide significant relief ahead of the upcoming Dussehra festival. In a letter sent on August 27, 2026, the NC-JCM Secretary urged the government to issue orders for the Productivity-Linked Bonus (PLB), regular bonus, or ad-hoc bonus for the occasion. They requested that the ceiling for the bonus payable to central government employees be raised from ₹7,000 to ₹21,000.
The employees' association has demanded that the government issue the necessary orders promptly to provide relief to employees before the upcoming festive season.
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