Diwali Bonus 2026: Government Announces Bonus Ahead of Diwali – Who Is Eligible?

Diwali Bonus 2026: Prime Minister Narendra Modi has approved a bonus of ₹6,908 for central government employees. This will be a 'non-productivity-linked'—or 'ad hoc '—bonus, calculated based on 30 days.

The central government has approved a 30-day 'non-productivity-linked' (ad-hoc) bonus for central government employees for the financial year 2025-26. The bonus is calculated based on a monthly salary ceiling of ₹7,000. This means that if an employee's average monthly salary is equal to or exceeds this ceiling, they will receive a maximum bonus of ₹6,908 for the 30 days. Conversely, employees whose average monthly salary is below this ceiling will receive a proportionately lower bonus amount.

The Department of Expenditure, under the Ministry of Finance, announced the President's approval for this bonus in an Office Memorandum issued on October 15, 2026. This approval applies to 'Group C' employees and 'Group B' non-gazetted employees who are not covered under any 'productivity-linked bonus' scheme.

Who Will Benefit?

To begin with, the government categorizes its employees into groups—A, B, C, and D—based on their rank. 'Group C' typically includes clerks, head clerks, typists, assistants, and multi-tasking staff; these employees are eligible to receive 100% of this bonus.

Meanwhile, 'Group B' employees are divided into two categories: gazetted officers (who possess the authority to certify or sign official documents) and non-gazetted employees (who do not hold such authority). The bonus announced by the government will be available only to non-gazetted employees, including those in roles such as senior assistants or supervisors. Senior gazetted officers in Group A and Group B categories will not be eligible for this bonus.

Eligible personnel from the Central Armed Police Forces and the Armed Forces are also included. This order further applies to employees in Union Territories who fall under the Central Government’s pay structure and are not covered by any other bonus or ex-gratia payment scheme.

What are the eligibility conditions for the bonus?

An employee must have completed at least 6 months of continuous service during the financial year 2025-26.
The employee must remain in service as of March 31, 2026—the final day of the accounting year 2025-26.
Those who have served for a period between 6 months and 1 year will receive the bonus on a pro-rata basis. In other words, for employees whose service duration during the specified financial year is more than 6 months but less than 1 year, the bonus will be calculated in proportion to the number of months of service completed, rather than the full amount of 6,908.