Corporate Compliance 15 September 2026
India's Ministry Activates Statutory Bonus Rules Under Wage Code
The Ministry of Labour and Employment in India has rolled out operational guidelines for the statutory bonus provisions under the newly consolidated Wage Code, detailing eligibility criteria, bonus calculation method, payment deadline and penalties for non‑compliance, affecting employers across sectors including law firms.
The Ministry of Labour and Employment has issued guidelines to operationalise statutory bonus provisions under India’s Wage Code.
- Eligibility: Employees meeting the Wage Code criteria are covered.
- Calculation: Bonus equals 8.33% of salary or 15 days’ wages, whichever is higher.
- Compliance: Payments must be made by 31 March each year; violations attract penalties.
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