How much bonus changes in as per labour codes?


What changes in providing bonus as per labour codes? How much can be the cutoff?


Hi Prabha,

As per the Code on Wages, 2019:

The provisions of bonus payment will be applicable to the establishments employing at least 20 employees on any day in that accounting year. The appropriate government will notify the salary threshold of employees who will be eligible for the bonus payment. The Payment of Bonus Act is applicable to the employees earning less than Rs.21,000 per month.

The annual bonus payable should be in the range of minimum 8.33% to a maximum of 20% of the wages earned by the employee or Rs.100/- whichever is higher. The amounts payable as bonus should be paid by the employer within 8 months from the date of close of the accounting year.

For more details you can refer to A Simple Guide to the Code on Wages, 2019 (

Bhuvana Anand

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