The Ministry of Labor and Employment in exercise of the powers conferred under Section 26(1) of the Code on Wages, 2019, issued Notification S.O. 4711(E) dated 25 August 2026. It fixes the wage ceiling for bonus eligibility and decides that every employee drawing wages not exceeding Rs 21,000 per month will be paid bonus as provided in that sub section.The notification has retrospective effect and is deemed to have come into force from 21 November 2025.

Key highlights

Notification S.O. 4711(E) dated 25th August, 2026 issued by Ministry of Labor & Employment, Government of India
Guidelines issued under Section 26(1) of the Code on Wages, 2019; wage ceiling for bonus eligibility under Code fixed at Rs 21,000 per month
Any employee drawing salary upto Rs 21000 per month is entitled for statutory bonus
Applicable across India as a Central notification under the Code on Wages
Works in conjunction with the companion Notification S.O. 4710(E), that sets the Rs 7,000 per month calculation cap for employees above this level of wages
Effective retrospectively from 21 November 2025, not from the date of issue
Signed by Deepika Kachhal, Joint Secretary, File No. S 33027/4/2026 WB
Published in the Gazette of India, Part II, Section 3, Sub section (ii), No. 4526

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Notification S.O. 4711(E) Wage Ceiling Bonus Eligibility Code on Wages