In 2 minutes
Bonus is now governed by Chapter IV of the Code on Wages.
An employee must work at least 30 days in the accounting year, subject to notified wage ceiling.
The payable result cannot be determined from 8.33% alone.
Gross profit, available surplus, allocable surplus and direct-tax adjustments matter.
Set-on/set-off requires a rolling schedule.
Historic ₹21,000 and ₹7,000 benchmarks must not be presented as current Code limits without checking the operative notification.
Legal map
- Code on Wages sections 26–41
- Relevant Central Rules and notifications
- Savings from Payment of Bonus Act, 1965
- Claims, records, audit and penalties provisions
Owner actions
- Confirm operative eligibility and calculation ceilings.
- Prepare employee eligibility and working-day file.
- Compute allocable surplus and four-year set-on/set-off.
- Document customary/interim bonus adjustments.
- Track payment due date and employee communication.
Practical examples
| Scenario | Finin2min treatment |
|---|---|
| Employee worked 240 days but wage exceeds the notified eligibility ceiling | Do not use the historic ceiling automatically. Test the current notification under section 26 before concluding eligibility. |
| Company has allocable surplus and an earlier set-on balance | Prepare the four-year set-on/set-off schedule before fixing the payable percentage. |
Common control failures
Questions and answers
Is bonus always 8.33%?
No. 8.33% is the statutory minimum concept, but eligibility, notified ceilings, allocable surplus, maximum, set-on/set-off and adjustments determine the result.
Can the old ₹21,000 ceiling be used automatically?
No. Treat it as a legacy benchmark unless the current operative notification under the Code confirms it.
Is this Statutory Bonus Hub a substitute for the official law?
No. It is an explanation and control layer. The official Code, rules, scheme, notification, state instrument and case law govern.
What date is the legal position based on?
The central legal position was reviewed as at 9 July 2026. State instruments and portals should be checked on the transaction date.
Why are legacy Acts still shown?
They help users understand subject history, savings, past periods, pending proceedings and transition into the Codes.
Which government is the appropriate government?
It depends on the establishment and statutory definition. Central-sector establishments generally fall to the Central Government; others generally fall to the State Government, subject to the exact provision.
What evidence should an employer retain?
Applicability memo, employee/worker master, attendance, wage sheets, bank proof, challans, returns, notices, approvals, acknowledgements and exception closure.
Can a calculator decide legal eligibility automatically?
Only when every legal input and current notification is available. Otherwise it should show an unresolved input rather than a confident number.
How should contractor compliance be checked?
Worker-wise by identity/UAN/IP number, attendance, wage, bank credit and statutory contribution—not only by aggregate challan.
What should be shown on a public article?
Official source, instrument status, effective date, state/central scope, last verification date, assumptions, examples and disclaimer.
How often should the hub be reviewed?
High-risk portals and notifications should be monitored frequently; the formal source register should be reviewed at least quarterly and on every material event.
Are state laws included?
The package includes a state-overlay structure. Exact state Acts, rules, rates, forms and portals must be populated and verified state by state.