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Labour Laws Central Ministry of Home Affairs Code on Wages, 2019

Bonus Calculation for Employees Earning Above ₹7,000 per Month under the Code on Wages, 2019

25-Aug-2026 | S.O. 4710(E)

The Ministry of Labour and Employment, vide S.O. 4710(E) dated 25 August 2026, has determined the basis for calculating bonus under Section 26 of the Code on Wages, 2019. Where an employee eligible for bonus under Section 26(1) earns wages exceeding ₹7,000 per month, the bonus payable 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 is deemed to have come into force retrospectively from 21 November 2025.

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