LatestCorporate Compliance 5 November 2026
Bonus Base Set at ₹7,000 or Minimum Wage, Whatever Is Higher
The 2026 Gazette of India clarifies that the statutory bonus base will be the higher of ₹7,000 or the employee's applicable minimum wage. In practice, most minimum wages exceed ₹7,000, meaning they will usually serve as the calculation base. This rule ensures that workers receive a bonus aligned with prevailing wage standards, reinforcing labour protection measures across the country.
According to the 25 August 2026 Gazette of India, the statutory bonus calculation uses the higher of ₹7,000 or the applicable minimum wage as the base.
- If an employee’s minimum wage exceeds ₹7,000, that higher amount becomes the bonus base.
- Where the minimum wage is lower, the base defaults to ₹7,000.
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