This Ministry of Labour and Employment has issued Notification S.O. 4710(E), dated 25th August 2026, under Section 26(2) of the Code on Wages, 2019. While the provision is already embedded within the Code on Wages Gazette Order, the Ministry has released this separate clarification circular to provide greater interpretive clarity.
Key points for your compliance reference:
- Bonus Calculation Basis: For employees eligible under Section 26(1), where wages exceed ₹7,000 per month, the bonus shall be computed as if the wage were ₹7,000 per month or the minimum wage fixed by the Central Government, whichever is higher.
- Effective Date: The notification is deemed to have come into force from 21st November 2025.
This clarification ensures uniformity in bonus computation and aligns with statutory requirements under the Code on Wages, 2019.