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

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.

The Productivity Linked Bonus for regular departmental employees will be calculated using the following formula specified in the order:

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:

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.

Ex-gratia bonus = (Average monthly TRCA × 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.