Governance & Policy

Diwali bonus: central staff to get 30 days' pay, up to Rs 6,908, for 2025-26

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A Finance Ministry order of October 15, 2026, grants central Group C and non-gazetted Group B staff a 30-day Diwali bonus, capped at about Rs 6,908.

What Happened

The Centre has sanctioned its annual Diwali bonus for central government employees. An order from the Department of Expenditure in the Ministry of Finance, dated October 15, 2026, grants a Non-Productivity Linked Bonus, often called the ad hoc bonus, equal to 30 days' emoluments for 2025-26 to Group C employees and non-gazetted Group B employees who are not covered by any productivity-linked bonus scheme. With the calculation ceiling fixed at Rs 7,000 a month, the most an eligible employee can receive is about Rs 6,908.

Key Facts

  • The bonus is for the accounting year 2025-26 and equals 30 days' emoluments.
  • It applies to Group C and non-gazetted Group B central government employees who do not get a productivity-linked bonus.
  • The monthly calculation ceiling is Rs 7,000, which gives a maximum bonus of about Rs 6,908 (Rs 7,000 multiplied by 30 and divided by 30.4).
  • Employees must have been in service on March 31, 2026, and must have at least six months of continuous service during 2025-26; shorter service is paid in proportion.
  • Eligible staff of the central paramilitary forces and the armed forces are also covered, according to reports on the order.
  • Gazetted Group B officers and Group A officers are not eligible.
  • Railway employees are covered separately: the Union Cabinet approved a 78-day productivity-linked bonus for them, with a maximum of Rs 17,951.

Why It Matters

For lakhs of lower- and middle-rung central government staff, the ad hoc bonus is a small but dependable addition to household budgets before Diwali, when spending on gifts, clothes, sweets and travel peaks. Because the order arrives a few weeks before the festival, the money can reach salary accounts in time to be spent during the season.

The amount is modest, and that is the main complaint from employee unions. The Rs 7,000 calculation ceiling has not moved for years, so the maximum bonus has stayed at about Rs 6,908 even as basic pay has risen. Unions have been pressing for the ceiling to be raised to Rs 21,000, which would lift the maximum payout to roughly Rs 20,724. The latest order does not change the ceiling.

The bonus also shows how the government separates two kinds of reward. Departments with measurable output, such as the railways, pay a productivity-linked bonus that can be much larger; this year railway staff get 78 days' wages, up to Rs 17,951. Other departments, where output is harder to measure, get the flat ad hoc bonus instead.

Searches for "Diwali bonus" rose sharply after reports of the order, especially in Tamil, as employees checked how much they would receive. The calculation is simple: an employee earning above the ceiling still gets the maximum of about Rs 6,908, while one with fewer than twelve months of service gets a proportionate share.

BonusWho gets itMaximum amount
Ad hoc (non-productivity linked) bonus, 30 daysGroup C and non-gazetted Group B central staffAbout Rs 6,908
Productivity-linked bonus, 78 daysEligible railway employeesRs 17,951
Union demandRevised ceiling of Rs 21,000About Rs 20,724 (not accepted)

Impact

Short-term: Eligible central employees will receive up to about Rs 6,908 with their pay ahead of Diwali, adding to festive spending.

Long-term: The unchanged ceiling keeps the bonus's real value falling each year, and the unions' demand for a higher ceiling is likely to stay on the table, especially as discussions on the next pay commission continue.

Who is affected: Group C and non-gazetted Group B central government employees, eligible members of the paramilitary and armed forces, and, through a separate scheme, railway employees.

Key Takeaway

Eligible central government employees will get a Diwali bonus of 30 days' pay for 2025-26, capped at about Rs 6,908 because the Rs 7,000 calculation ceiling remains unchanged.

Questions and Answers

How much is the Diwali bonus for central government employees in 2026?

The ad hoc bonus for 2025-26 equals 30 days' emoluments, calculated on a ceiling of Rs 7,000 a month, so the maximum is about Rs 6,908. The Department of Expenditure order is dated October 15, 2026.

Who is eligible for the central government ad hoc bonus?

Group C and non-gazetted Group B employees who are not covered by a productivity-linked bonus, were in service on March 31, 2026, and had at least six months of continuous service in 2025-26. Group A and gazetted Group B officers are excluded.

Is the railway Diwali bonus different?

Yes. Railway employees get a productivity-linked bonus of 78 days' wages, up to Rs 17,951, approved separately by the Union Cabinet.

Have unions asked for a bigger bonus?

Yes. They want the calculation ceiling raised from Rs 7,000 to Rs 21,000, which would raise the maximum to about Rs 20,724, but the latest order keeps the old ceiling.

Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.

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Sourced and fact-checked by the Peepals Global Editorial Team

Reported, fact-checked and published by the Peepals Global Editorial Team.

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