Clarification From the Ministry of Labour & Employment About Bonus Calculation
- August 25, 2026
- Posted by: AscentHR
- Categories: India (All States), Notification
The Ministry of Labour and Employment, vide notification no. S.O. 4710(E), dated 25th August 2026, has prescribed that the wage amount is to be considered for the calculation of the statutory bonus payable to eligible employees, under Section 26(2) of the Code on Wages, 2019.
The notification provides that where an employee’s monthly wages exceed ₹7,000, the bonus shall be calculated as if the employee’s wages were ₹7,000 per month, or the minimum wage fixed by the Central Government, whichever is higher.
The notification has been given retrospective effect and is deemed to have come into force on 21st November 2025.
Please refer to the notification below:
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