India Post sanctions 60 days' Productivity Linked Bonus: Check employee eligibility, salary limits and calculation rules

India Post has announced a 60-day Productivity Linked Bonus for eligible employees for 2025-26. The order covers MTS, Group C, non-gazetted Group B staff, Gramin Dak Sevaks and eligible casual labourers. Check eligibility, salary limits and how the bonus is calculated.

India Post has announced a Productivity Linked Bonus (PLB) equivalent to 60 days' emoluments for eligible employees for the accounting year 2025-26.

The order, issued by the Department of Posts on Friday, also provides for ex-gratia bonus payments to regularly engaged Gramin Dak Sevaks (GDS) and ad hoc bonuses to eligible full-time casual labourers, including those with temporary status.

"The undersigned is directed to convey the sanction of the President for payment of Productivity Linked Bonus for the Accounting year 2025-26 equivalent of emoluments of 60 (Sixty) Days," order noted.

However, the bonus calculation is subject to prescribed salary ceilings, the number of days worked, and the employee category.

* Regular departmental employees: Multi-Tasking Staff (MTS), Group C employees, and non-gazetted Group B employees.

* Gramin Dak Sevaks (GDS): Regularly engaged GDS will receive an ex-gratia bonus.

* Full-time casual labourers: Ad-hoc bonus to full-time casual labourers and temporary status casual labourers.

Bonus = (Average emoluments × Number of bonus days) ÷ 30.4

Here, 30.4 represents the average number of days in a month, while average emoluments refer to the eligible salary components drawn during the accounting year, subject to the prescribed ceiling.

The order states: "In case of emoluments exceeding Rs.7000/- (Rupees Seven Thousand only) in any month during the accounting year 2025-26, the emoluments shall be restricted to Rs.7000/- per month only."

For this calculation, emoluments include basic pay in the pay matrix, dearness allowance (DA), Special Banking Allowance (S.B. Allowance), deputation (duty) allowance and training allowance paid to faculty members in training institutes.

Average monthly emoluments will be calculated by adding the eligible salary drawn from 1 April 2025 to 31 March 2026, restricting each month's amount to ₹7,000, and dividing the total by 12. Proportionate deductions from the ceiling apply for periods of extraordinary leave (EOL) and dies-non.

Example: If an employee's average eligible monthly emoluments are ₹7,000, the calculation for 60 days of bonus would be:

Bonus = ( ₹7,000 × 60) ÷ 30.4

Indicative bonus amount: ₹13,816

How will the bonus be calculated for Gramin Dak Sevaks?

Regularly engaged GDS will receive an ex-gratia bonus based on their average monthly Time Related Continuity Allowance (TRCA) and the corresponding dearness allowance drawn during the accounting year.

The formula is:

Ex-gratia bonus = (Average monthly TRCA, including DA × Number of bonus days) ÷ 30.4

For GDS who remained on duty throughout 2025-26, the average monthly amount will be calculated by dividing the eligible TRCA and corresponding DA drawn between 1 April 2025 and 31 March 2026 by 12. The monthly amount will be restricted to ₹7,000 if it exceeds this limit.

For GDS who joined during the year, were put off duty or left service during the accounting year, the bonus will be paid proportionately, subject to the applicable provisions.

To qualify, they must have worked eight hours a day for at least 240 days a year for three consecutive years or more as of 31 March 2026. For offices observing a five-day working week, the requirement is 206 days in each year for three consecutive years or more.

The bonus will be calculated on notional monthly wages of ₹1,200. The formula specified in the order is:

Maximum ad-hoc bonus = (Notional monthly wages of ₹1,200) X (Number of days of bonus)/ 30.4

For 60 days of bonus, the maximum amount works out to approximately ₹2,368.

To calculate the actual bonus, the Department of Posts will first divide the maximum ad-hoc bonus of the year by 365 to arrive at the daily bonus rate. This rate will then be multiplied by the number of days the labourer's services were used between 1 April 2025 and 31 March 2026.

For example, if a labourer worked for 200 days during the year, the bonus would be approximately ₹1,29, i.e., ( ₹2,368 ÷ 365 × 200).

If actual monthly wages were below ₹1,200 in any month between 1 April 2025 and 31 March 2026, the actual wages drawn will be considered for calculating the bonus.

What happens if an employee was suspended or left service during the year?

According to the order, employees who were under suspension or had dies-non-imposed during the accounting year will be governed by the relevant clarification orders issued by the Department of Posts in 1981 and 1988.

Employees who resigned, retired, left service or proceeded on deputation between 1 April 2025 and 31 March 2026 will also be eligible for the applicable bonus under the rules for regular employees.

When will the bonus be paid?

The order sanctions the payment of the bonus for the accounting year 2025-26. The amount payable under the order will be rounded off to the nearest rupee.

The expenditure will be booked under the head "Rewards" under the relevant sub-head of account to which the employees' pay and allowances are debited. The payment will be met from the sanctioned grant for the financial year 2026-27.