LatestCorporate Compliance 5 November 2026
India Sets Bonus Floor at ₹7,000 or Minimum Wage
The Indian government has codified a rule under the Code on Wages that sets the statutory bonus base at the higher of ₹7,000 or the employee’s minimum wage. Labour Ministry notification S.O. 4710(E) dated 25 August 2026 makes the provision effective immediately, guaranteeing a minimum bonus regardless of wage differences.
The government has introduced a new provision under the Code on Wages that fixes the statutory bonus amount at whichever is higher – ₹7,000 or the worker’s minimum wage.
- Bonus base: higher of ₹7,000 or minimum wage
- Scope: applies to all employees covered by the Code on Wages
- Effective date: 25 August 2026 (date of notification)
Read the full Labour Ministry notification here.
Need help understanding this update?
Connect with our domain experts instantly via WhatsApp for customized legal guidance.