Dussehra bonus: Central govt employees demand 3x jump in ₹7,000 payment ceiling

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. The 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.

Dussehra bonus for govt employees: Legal Basis and Statutory Changes

The demand builds directly upon past discussions and recent legislative updates:

• May 2026 Council Discussions: During the 49th National Council (JCM) meeting on May 11, 2026, the Official Side noted that raising the bonus ceiling required a formal revision of the payment cap under the Code on Wages, 2019 (which subsumed the Payment of Bonus Act, 1965).
• Gazette Notification: On August 25, 2026, the Ministry of Labour and Employment published a notification stipulating that if an employee's monthly wage exceeds ₹7,000, bonus calculations must be based on ₹7,000 or the minimum wage fixed by the central government—whichever is higher.
• Retrospective Implementation: The Ministry's notified rule change carries retrospective effect dating back to November 21, 2025.

Dussehra bonus: Key Impact on Employee Payouts

In a letter to the Cabinet Secretary, JCM Staff Side Secretary Shiva Gopal Mishra highlighted that the central government's revision of the minimum wage to ₹21,000 per month alters the calculation formula. Because the bonus payable ceiling directly determines the total formulaic payout for eligible staff, aligning the cap with the updated ₹21,000 minimum wage would represent a substantial enhancement in festive disbursements.

“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 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. Employees now await government clarity on the final calculation ceiling for the current payment cycle.