27/08/2026
Bonus as per Minimum Wage
₹7,000 monthly limit removed
New Delhi: The Central Labour Ministry has made changes regarding bonus payments. So far, employees earning up to ₹21,000 per month were paid an annual bonus of 8.33%, calculated on a maximum amount of ₹7,000 per month.
Even if the minimum wage fixed by the Central Government was higher than ₹7,000, the bonus was calculated only on ₹7,000. The government has now revised this system.
According to a notification issued by the Central Labour Ministry on Tuesday, if the prescribed minimum wage is higher than ₹7,000, the bonus will now be calculated on that higher minimum wage.
For example, if the minimum wage fixed by the Central Government is ₹18,000, the employee will be entitled to an 8.33% bonus calculated on ₹18,000.
These orders came into effect from 21 November 2025.
