Section 37: Adjustment of customary or interim bonus against bonus payable under this Code
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Allows adjustment of customary or interim bonus already paid against the statutory bonus due for the same accounting year.
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- Where in any accounting year,— (a) an employer has paid any puja bonus or other customary bonus to employee; or (b) an employer has paid a part of the bonus payable under this Code to an employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Code in respect of that…
Provisos, explanations & qualifications
- No proviso/explanation was separately extracted from this section text.
Thresholds and timelines in the text
- Adjustment of customary or interim bonus against bonus payable under this Code.—Where in any accounting year,— (a) an employer has paid any puja bonus or other customary bonus to employee; or (b) an employer has paid a part of the bonus payable under this Code to an employee before the date on which such bonus becomes payable, then, the employer shall be…
Actors expressly appearing in the text
Employer, Employee / worker
Full statutory text — Section 37
37. Adjustment of customary or interim bonus against bonus payable under this Code.—Where
in any accounting year,—
(a) an employer has paid any puja bonus or other customary bonus to employee; or
(b) an employer has paid a part of the bonus payable under this Code to an employee before the
date on which such bonus becomes payable,
then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus
payable by him to the employee under this Code in respect of that accounting year and the employee shall
be entitled to receive only the balance.How to apply this provision
- Primary statutory test — Where in any accounting year,— (a) an employer has paid any puja bonus or other customary bonus to employee; or (b) an employer has paid a part of the bonus payable under this Code to an employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Code in respect of that…
- Numerical or timing control — Adjustment of customary or interim bonus against bonus payable under this Code.—Where in any accounting year,— (a) an employer has paid any puja bonus or other customary bonus to employee; or (b) an employer has paid a part of the bonus payable under this Code to an employee before the date on which such bonus becomes payable, then, the employer shall be…
- Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
An employer configuring payroll for adjustment of customary or interim bonus against bonus payable under this code should first identify the employee and wage period, then apply the exact provision and any linked rule. The system rule should be tested against a sample payslip and bank/payment record. A text point to test is: “Adjustment of customary or interim bonus against bonus payable under this Code.—Where in any accounting year,— (a) an employer has paid any puja bonus or other customary bonus to employee; or (b) an employer has paid a part of the bonus payable under this Code to an employee befo”
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 37
What does Section 37 of the Code on Wages cover?
Allows adjustment of customary or interim bonus already paid against the statutory bonus due for the same accounting year.
What is the main legal requirement or power in Section 37?
The first operative clause identified from the official text is: “Where in any accounting year,— (a) an employer has paid any puja bonus or other customary bonus to employee; or (b) an employer has paid a part of the bonus payable under this Code to an employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Code in respect of that…” Read it with the remaining subsections and any proviso below.
Does Section 37 contain a proviso or explanation?
No standalone proviso or explanation was extracted from this section text. Check the full text below for clause-level qualifications.
What time limit, percentage or amount appears in Section 37?
The provision contains this numerical/time expression: “Adjustment of customary or interim bonus against bonus payable under this Code.—Where in any accounting year,— (a) an employer has paid any puja bonus or other customary bonus to employee; or (b) an employer has paid a part of the bonus payable under this Code to an employee before the date on which such bonus becomes payable, then, the employer shall be…” Apply it only in the clause and context in which it appears.
Which 2026 Central Rules are linked to Section 37?
No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.
Is Section 37 currently operative?
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Source & verification trail
Act: Code on Wages, 2019 — official India Code PDF ↗
Central Rules: Code on Wages (Central) Rules, 2026 — G.S.R. 343(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.