Bonus calculation as per the new labour code

Statutory bonus under the Code on Wages, 2019 goes to employees drawing wages up to ₹21,000 a month who worked at least 30 days in the accounting year. It is at least 8⅓% and at most 20% of wages, computed on ₹7,000 a month or the minimum wage, whichever is higher, when wages are above ₹7,000.

Your figures

Is any pay given in kind (food coupons, ration, mobile recharge)?

NoYes

Is the Central Government the appropriate government for this establishment?

YesNo, a State Government

Code on Wages, s.2(d): the Central Government for establishments run by or under its authority, railways, mines, oil fields, major ports, air transport, telecommunication, banking and insurance companies, central public sector undertakings and their contractors; the State Government for any other establishment.

One month's pay

Rupees a month, as on the pay statement. Leave a box blank if nothing is paid under it. Write 1,50,000 or 150000; no ₹ sign.

Wages: s.2(y)(i) to (iii)

Basic pay

s.2(y)(i)

Dearness allowance

s.2(y)(ii)

Retaining allowance

s.2(y)(iii)

Left out of wages, counted in the 50% test: s.2(y)(a) to (i)

House rent allowance

s.2(y)(f)

Conveyance allowance, travel concession

s.2(y)(d)

Overtime allowance

s.2(y)(h); Additional FAQs 1a and 8

Commission

s.2(y), exclusion clause (i)

Employer's PF and pension contribution

s.2(y)(c); Additional FAQ 1b. Enter the contribution actually paid for this month, not the new figure the PF calculator works out.

Statutory bonus paid with the month

s.2(y)(a); Additional FAQ 1b

Value of house, amenities or services; special expenses of the job; pay under an award or settlement

s.2(y)(b), (e), (g)

Other items

Any other allowance, e.g. special allowance

Not named in s.2(y)(a) to (k): the Code's text makes it wages, the FAQ wording puts it in the test. Both are shown.

Gratuity, retrenchment or retirement benefit shown in the pay

s.2(y)(j), (k): never wages. FAQ 7 counts them in total remuneration, Additional FAQ 1b does not. Both are shown.

First day of the accounting year

Months worked in the year at this pay (1 to 12)

At least 30 days worked in the accounting year?

YesNo

Central minimum wage for this employee, a month

Needed when wages are above ₹7,000 a month. Rupees a month; blank if you do not know it.

The rules applied

Who: s.26(1) with S.O. 4711(E) of 25 August 2026: wages not exceeding ₹21,000 a month, at least 30 days' work in the accounting year. Deemed in force from 21 November 2025.
Base: s.26(2) with S.O. 4710(E) of 25 August 2026: above ₹7,000 a month, bonus is computed as if the wage were ₹7,000 or the minimum wage fixed by the Central Government, whichever is higher.
Rate: at least 8⅓% or ₹100, whichever is higher (s.26(1)); with allocable surplus, up to 20% (s.26(3), (5)). Where the employee did not work all working days, s.27 reduces the minimum in proportion.
Both notifications are the Central Government's: they apply where it is the appropriate government. States notify their own figures, not read here.
Not here: allocable surplus (s.31 to s.36), the first five years of a new establishment (s.26(6)), disqualification (s.29). An accounting year that began before 21 November 2025 is partly under the Payment of Bonus Act, 1965, so it is refused.

Sources read in the Gazette of India and on labour.gov.in on 6 November 2026. Rules made by States are not covered.

A calculation from the published texts, not legal advice. It does not say that a pay structure complies with the Codes. Check with the rules that apply to your establishment.