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Demand for higher Deepavali bonus for Indian public sector workers

A political leader has called for increasing the festive bonus for government employees to 30%, arguing that the current maximum rate has not been revised in nearly two decades. The proposal seeks to boost payments that currently range between ₹7,000 and ₹16,800 based on salary considerations.

LSN India · 17 October 2026

Demand for higher Deepavali bonus for Indian public sector workers

A senior political figure has renewed calls for substantially raising the Deepavali bonus for India's public sector workforce, citing the urgent need to improve financial relief during the festival season. The proposal seeks to increase the maximum bonus payout from the current 20% to 30%, a move that would represent a significant enhancement to workers' festive benefits.

Currently, public sector employees receive Deepavali bonuses ranging from ₹7,000 to ₹16,800, determined by a prescribed wage ceiling applicable across government departments. The maximum bonus rate of 20% has remained unchanged since 2004, with no adjustments made to reflect inflation or improved economic conditions over the past two decades.

Advocates for the increase argue that the stagnant bonus structure has eroded its real value, placing a financial strain on government workers during the festive period. The demand reflects broader concerns about wage growth and cost-of-living support for the public sector workforce across India.

The proposal would require government approval and budgetary allocation to implement. Any decision on revision would typically involve consultations with relevant finance ministries and implementation across central and state government bodies.